SME Times is powered by   
Search News
Just in:   • Forex reserves rise by $2.7 bn  • US govt shuts down as Senate fails to pass stopgap budget  • SIAM expects to release documents on hybrid fuel vehicles in Auto Expo   • Mauritius India's largest FDI source in 2016-17  • Mercedes launches India's first BSVI fuel-compliant vehicle 
Last updated: 09 Jan, 2018  

FIEO-logoTHMB FIEO urges states to help, support exporters particularly MSMEs

   Top Stories
» Jaitley calls for CSR compliance by corporates
» Modi to attend World Economic Forum annual meeting
» Industry welcomes TRAI proposal on in-flight mobile calls, Internet services
» Unemployment may cripple economic growth, says skill minister
» Jaitley meets state FMs in pre-Budget consultation
Saurabh Gupta | 09 Jan, 2018
The apex exporters body, Federation of Indian Export Organisations (FIEO) has suggested the number of points during the 3rd meeting of the 'Council for Trade Development and Promotion' in New Delhi to help protect exporters', particularly the Micro, Small and Medium Enterprises (MSMEs).

The suggestions were put forward by FIEO President, Ganesh Kumar Gupta in New Delhi on Monday.

He said, "Indian exporters are facing tough competition globally, particularly MSMEs who have limited resources. States have indeed an important role to play in India’s exports as all factors of production lies with the State." He said that the support of State would immensely benefit the exporting segment in terms of enhancing the ease of doing business and reducing transaction cost as well as time.

He said, "Exporters are now required to pay taxes and subsequently claim refund under GST. The States, in this regard, have a larger role to play as they shall be handling large number of refund applications manually, till online mechanism starts functioning. Hence, awareness amongst the concerned officers at ground is extremely important for smooth processing of such refund applications."

Moreover, a refund mechanism, how so ever efficient, affect the liquidity and competitiveness of exports and thus we request you all to provide exemption from GST on inputs required for export production as is being provided by many countries where GST or VAT is in operation.

Secondly, electricity duty being levied by some States are presently not refundable and thus has to be absorbed in the export price. This has bearing on the export competitiveness to some extent. Hence, export industry would require support from State Government to push for electricity duty under the GST regime. We expect that Petroleum goods will also be brought under GST in next fiscal.

Gupta said, "Exports are price sensitive and most of exports are being done on a razor thin margins. However, land locked exporters have to bear huge transportation charges which is being absorbed in export pricing. They thus lose out to their competitors. Hence, States may consider providing transport/freight subsidy enabling exporters from hinterland to compete with their counterparts in coastal states as well as other countries.

"Sir, lack of facilities like testing, designing etc. at local level for a particular export product does add to transaction cost and time. Here, I would submit that States may identify projects after examining the infrastructure needs of particular exporting centers and accordingly provide support under TIES," he said.

"Last mile connectivity is need of the hour for smooth movement of export cargo. Hence, States may review its connectivity to ports, dry ports and LCS and identify sectors which require attention," he added.

Services and agri sector could be the major growth drivers for export promotion as well as employment. Conducive polices, hard infrastructure as well as skill are crucial areas where the Government can focus upon while drawing action plan.

FIEO President said, There is a need to enhance the visibility of Indian products abroad. States, in line with the marketing support under Central Government schemes, may introduce similar schemes for sectors having export potential.

Each State must have empowered Export Facilitation Committee (EFC) chaired by the State Commerce/ Industry Minister.  This committee should include Industry, Revenue, Energy and Labour Secretaries and few l exporters. This committee must meet once a month to sort out all the issues affecting export and industrial growth. At present, some States have Udyog Mitra, Grievance Committee, etc but all these committees do not have any teeth and are not effective.  EFC should have legislative backing so that its decisions are followed in letter and spirit.

"Lastly, an actionable and dynamic export strategy for States is important and FIEO assures full support to States in its endeavour of developing suitable strategies. Further, export officers at district level could be the key enablers in process of framing strategies as they have direct interface with local industry. There is need to sensitise State offices in various facets of international trade," he added.

Gupta was sure that the initiative will be taken under the Chairpersonship of Commerce & Industry Minister would go a long way in bringing the desired focus towards export sector and taking Indian exports to a higher growth trajectory.
Print the Page Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 21 Jan, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(26)
» GST Council reduces GST rates on 18 handicrafts items(2)
» List of items for which anti dumping duties has been levied with related notifications(1)
» Districts to be export units, says Commerce Minister(1)
» FIEO urges states to help, support exporters particularly MSMEs(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter