Jan exports of $34.06bn shows resilience of Indian exporters, says Dr Sakthivel
The setting up of 100 Cargo Terminals, announced in the Budget 2022-23, will facilitate Export Import trade a lot as logistics challenges are the biggest stumbling blocks, says FIEO President Dr A Sakthivel.
Also, the increase in the capital expenditure by 35.4% to Rs.7.50 lakh crore in the Budget 2022-23 from Rs.5.54 lakh crore in 2021-22 will enable MSMEs to benefit from additional capital allocation and boost job creation in the sector, he said in welcoming the budget on 1 Feb 2022.
FIEO welcomed the extension of Emergency Credit Line Guarantee Scheme (ECLGS) for 2022-23 with an additional outlay of Rs.50,000 crore and allocation of an additional credit provision of Rs.2 lakh crore under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) to meet the requirement of MSMEs.
The ECLGS Scheme has benefited the MSME during the peak Covid time and its extension will further infuse life in the businesses, when recovery is on the card, said Dr Sakthivel. “The CGTMSE will help to provide collateral free lending and infusion of liquidity.”
The seven engines of growth under the PM Gati Shakti project will help to reduce the logistics cost and time of Indian exports significantly thereby imparting added competitiveness to exports.
The focus on skilling through the Digital Ecosystem for Skilling and Livelihood (DESH) Stack E-portal for Skilling, Re-skilling and Upskilling through online training will be very handy for exports as it will help in qualitative manufacturing and consistency in production.
Dr Sakthivel said that the replacement of SEZ Act with a new legislation to meet the requirement of a dynamic sector of international trade and transparent and risk based customs administration of SEZ will make such Special Economic Zones engine of economic growth and employment creation besides exports.
He said that many other operational challenges faced by SEZ units including duty on the finished products while selling in the domestic market should be taken care of in the legislative changes.
The extension of the time limit for concessional income tax facility of 15% to new domestic manufacturing units commencing production till 31 March 2024 will attract investment particularly in various sectors of exports since the domestic investment is set to increase and global investment is likely to pour into the country including in joint venture opportunities.
The FIEO President said that the sectoral relief given through the reduction in duty on cut & polished diamonds, gemstones, certain chemicals and extension of zero duty on steel scrap will benefit the gems & jewellery, chemicals and engineering exporters.
Similarly, the restoration of the facility of duty free import of trimming and embellishments for exports will help the apparel, textiles, leather garments & leather footwear, handicrafts, sports goods and other sectors.
The additional budget for the Interest Equalization Scheme for the year 2021-22 and provision of Rs.2,621.50 crore for 2022-23 have provided assurance on the continuance of the Interest Equalization Scheme. “We are expecting a suitable announcement in this regard,” he said.
Dr Sakthivel appreciated the introduction of a new clause under the Customs Act making publishing of any information relating to the value or quantity or details of importer or exporter with imprisonment up to six months or with fine up to Rs.50,000 or both, which will address the issue of revealing the sensitive information of exporters thereby generating unethical competition.
Responding to the January 2022 Trade Data, Dr Sakthivel said that the exports of US$34.06 billion with a growth of 23.69% during the month has once again showcased the resilience of the Indian export sector.
The enthusiasm with which the Exim community has impressively performed has further given a boost to the sector, thereby helping the economy further move towards recovery.
Reaching US$335.44 billion with a very high growth of 46.53% compared to the same period previous fiscal is commendable in itself further re-invigorating fresh impetus among the exporters of crossing the US$400 billion exports target for the fiscal.
Top sectors, which performed impressively during the month were Engineering Goods, Petroleum Products, Gems & Jewellery, Organic & Inorganic Chemicals, Cotton Yarn/Fabrics/Made-ups, Handloom Products etc., RMG of All Textiles, Electronic Goods, Plastic & Linoleum and Rice. Out of these, many of them were labour-intensive sectors contributing majorly to the exports basket, which itself is a good sign, further helping job creation in the country.
However, imports clocked US$52.01 billion during the month with a growth of 23.74%, is a point of concern and should be analysed, said Dr Sakthivel. fiinews.com
