FIEO Pleads for Reform
in States, use of Rail Transport to Step up Exports
Points put forward by FIEO at the
first meeting of Council for Trade Development and Promotion at New Delhi on
8th January, 2016.
States have very important role to
play in promoting India’s exports as all factors of production lies within the
ambit of States. FIEO would like to flag a couple of points where support of
State would immensely benefit the exports sector in terms of enhancing the ease
of doing business and reducing transaction cost as well as time.
Indian exporters are facing tough
competition globally, particularly MSME segment who have limited resources.
Delay in refund of state levies adversely affect the liquidity position of
small exporters. States should ensure to put in place a mechanism for timely
clearance of such dues. In any case online filing, tracking and refund would be
a part of State GST also and thus such action will prepare States to address
GST concerns as well.
Secondly, in India roads carry
nearly 65% cargo against the global trend where railway is the major
contributor. Therefore States should focus on improving the last mile
connectivity of major exporting hubs to ICDs/Ports. Quality of road including
their load bearing capacity may be upgraded for smooth transit of export goods.
Another area where the export
industry would require support of State Government is to push for electricity
duty under State GST as the incidence of electricity duty for few sector is
quite high.
Geographical Indications(GI)
helps to protect interest of a nation as a whole as well as to fetch better
margins for a product. States should be pro active in
supporting Associations in identifying products that may qualify for obtaining
Geographical indication (GI) tag.
Few States have stringent exit
norms for units under Industrial estates and such estates also lack the basic
trade infrastructure. States may review all industrial Estates in terms of
their utilisation and infrastructure for corrective measures that would indeed
help the industry.
Devising proper exports strategies
needs accurate supporting trade data to understand the trends which is lacking.
States should sensitise exporters and other stake holders to correctly put the
States Code for which drop down menu has been provided by the Customs.
Lastly, States are urged that
besides, the marketing assistance available under various Central Government
schemes, States may consider introducing similar schemes particularly for
sectors having export potential.