SME Times News Bureau | 01 Feb, 2020
FIEO President Sharad Kumar Saraf has said that the Union
budget has attempted at structural changes in agriculture, horticulture and
pisciculture, through 16 Action Points, to make India a major player in agro
and allied sectors exports in medium to long term basis besides simultaneously
doubling our farmers income.
The focus on standards and quality will facilitate exports
of quality products from India fetching better unit realisation and enabling
Indian manufacturers to meet the technical standards, barriers erected by many
of our trading partners, while also stemming cheap quality imports thereby
protecting the domestic industry.
The one district one product can be a game changer for
exports. Substantial exports can be targeted by focusing at the district level
besides creating exports culture in India. Such a strategy will be extremely
helpful for upliftment of artisans and craftsmen.
However, the scheme should be supplemented by forming
“District Exports Council” on the pattern of United States and Germany to make
districts vibrant and active partner in exports, added FIEO Chief. Active
involvement of district collector is essential for this scheme to succeed.
The new scheme for electronic sectors including mobile,
semi-conductors and electronic equipment will pave the way for increasing
electronics exports from the country particularly of the mobile in which
substantial domestic capabilities have already been created resulting in
exports of mobile phones from India to Middle-East, South Asia and Africa.
Further support to this sector, which has also been provided
additional MEIS support recently, will help India to enter the markets of
advanced economies as well.
Saraf said that the scheme of NIRVIK will ease the lending
process and enhance the availability of credit to exporters. Under the Scheme,
the insurance over guarantee will now cover upto 90% of the principal and interest
both on pre & post shipment credit.
The ECGC currently provides such guarantee only upto 60% of
the loss to the banks. The premium for the coverage will also get reduced
thereby benefiting the MSME exporters. This in turn is expected to enhance
accessibility and affordability of credit to exporters, besides, less provision
requirement and liquidity due to quick settlement of claim ensuring
availability of adequate working capital to the export sector.
Looking into the rising uncertainties and slowdown, the
scheme is most timely as credit defaults are set to rise in such challenging
times.
The FIEO President added that the new scheme to provide
digital payment of the taxes which have not been integrated under GST like
electricity duty or products & services not covered under GST such as
petroleum products and electricity will help in providing some more
competitiveness to our exports and moving towards the avowed objective of zero
rebating of exports.
While the scheme will be rolled out during the next
financial year, the fixation of rates for a large number of products would
require elaborate institutional mechanism to work out such rates. However, the
scheme would be compatible with “Agreement on Subsidies and Countervailing
Measures (ASCM)” of WTO thus can sustain exports on long term basis.
The various initiatives to improve infrastructure make the
logistics efficient including proposed announcement of the New Logistics Policy
will help exports as infrastructure bottlenecks affect the supply side of
Indian exports.
Saraf hopes that the Finance Minister will consider the
challenging times being faced by exporters as can be seen from the lack of
growth in exports in spite of various opportunities thrown up due to US-China
trade war and other geopolitical issues. Prime Minister has rightly acknowledged exports as an important
component of economic growth.
Saraf expects some relief to exporters in the supplementary
budgetary provisions that may come up
during the debate on the budget including legacy dispute scheme for customs
duty on the lines of direct tax disputes.