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NEIA gets Rs.300crore to boost exports in challenging markets

Target: US$60bn agri exports by 2022

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Target: US$60bn agri exports by 2022

 

Ministry of Agriculture and Farmers' Welfare.

 

The Government has contributed Rs.300 crore, as a Grant-in-aid (corpus), to the National Export Insurance Account (NEIA) trust on 21 June 2019, enhancing risk taking capacity and support for project exports in challenging markets.

Giving this update in Parliament on 27 Nov 2019, Commerce and Industry Minister Piyush Goyal said a new Agriculture Export Policy (AEP) was approved in December 2018 to increase agriculture exports from present US$30 billion to US$60+ billion by 2022. Outlay of Rs.206 crores for 2019-20 has been approved for its implementation.

A capital of Rs.389 crore has been infused into Export Credit Guarantee Corporation (ECGC) on 21 June 2019.

The Government is also boosting Gem and Jewellery exports by resolution of various issues which inter alia includes removal of the requirement of paying IGST on re-import of goods which were exported earlier for exhibition purpose and consignment basis.

It is allowing partial discharge of bonds executed by nominated agencies and banks for import of gold to be supplied to jewellery exporters, thereby enabling nominated agencies/banks to release bank guarantee of jewellery exporters who have fulfilled their export obligation.

A Common Digital Platform for Issuance of electronic Certificates of Origin (CoO) for the exporters was launched on 16 Sept 2019 to improve ease of doing business for exporters.

Special Economic Zone (Amendment) Bill 2019 will enable any entity to set up a unit in SEZs, including Trusts. This would help boost investments and create new export and job opportunities, he said.

A separate Division under a Special Secretary has been created in the Department of Commerce to look at integrated development of the logistics sector, he said.

There is no official study to estimate the logistics costs in India. Some private agencies have estimated logistics costs in various countries including India, he pointed out.

As per the WTO data released in April 2019, India’s share in global exports for merchandise was 1.7% and in imports was 2.6% in 2018. For the year 2018 for service sector,

India’s share in service sector exports was 3.5 % and imports was 3.2% in 2018.

The Minister stressed that the Government of India is proactively taking a number of steps to boost exports, which inter-alia includes the following:

Merger of Council of Trade and Development and Board of Trade providing a common platform for addressing stakeholder concerns.

This common platform, comprising of representatives from industry, export promotion councils, the Government and state governments and representatives from banking and finance sector is playing a critical role in addressing export related concerns, with a focus on addressing these on a priority basis. fiinews.com

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