FIEO President requests for Extension of Emergency Credit Linked Guarantee Scheme (ECLGS) to be extended till 31st of March, 2023

· Structural Issues for Exports need to be addressed to provide long-term Roadmap: Commerce Secretary, GoI

· Exporters of Tirupur for exhibiting great entrepreneurship and processing exports of Rs 35,000 crore in 2021-22.

· India-Australia ECTA which will be operational from 29th December, 2022.

[FIEO Press Release/12.12.2022]

Addressing an Interactive Session at Tirupur on December 10, 2022, Sunil Barthwal, Commerce Secretary, GoI, said that structural issues in exports need to be resolved so that we can support our exports on long-term basis. He said that focus on skilling is required to increase productivity as wages will continue to move upward. The Commerce Secretary said that Government Schemes may consider to provide common facilities in clusters particularly those capital-intensive facility which can burden the entrepreneurs. He complimented the exporters of Tirupur for exhibiting great entrepreneurship and processing exports of Rs 35,000 crore in 2021-22.

Earlier, Dr A Sakthivel, President, FIEO, in his remarks, highlighted on the liquidity challenges faced by the exporters and requested for extension of Emergency Credit Linked Guarantee Scheme (ECLGS) to be extended till 31st of March,2023 and requested for re-introduction of Export Refinancing facility for exports to encourage banks to get re-financed at Repo Rate. He requested that the tenure of PCFC may be enhanced from 180 days to 365 days looking into the supply side and logistics challenges. While welcoming the extension of RoDTEP rates for Chemicals, Pharma and Articles of Iron & Steel, Dr Sakthivel requested that the rates may be notified for the holders of Advance Authorization, DFIA and EOU units as well.

Santosh Kumar Sarangi, DGFT asked the industry to utilise the opportunities offered through India-UAE CEPA which have become operational from 1st May, 2022 and India-Australia ECTA which will be operational from 29th December, 2022. DGFT said that global recession will not affect the country and exports are set to bounce back in next few months. He assured the industry that DGFT would be providing the necessary facilitation to the Exim sector.

Dr Ajay Sahai, DG & CEO, FIEO requested for development of an Indian shipping line of global repute as exporters are solely at the mercy of foreign shipping lines and country repatriated over US$ 80 Bn as transport services in the calendar year 2021. He also urged for early operationalization of DESH Scheme which is set to provide plug & play facility wooing Indian investors and attracting FDI.