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SCALE suggests sector-specific strategy to boost exports
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SME Times News Bureau | 24 Aug, 2021
The Steering Committee for Advancing Local Value-Add and Exports
(SCALE), chaired by Mahindra & Mahindra MD and CEO Pawan Goenka, has
suggested sector-specific strategy to boost local manufacturing and
exports.
The committee, which has submitted its report to the
Commerce Ministry, has identified five key sectors including auto and
auto components, furniture, fisheries, textiles, and toys as pillars for
Atmanirbhar Bharat where specific action would help in scaling up
exports.
With regard to auto-component sector, it has suggested
incentivising MNC component manufacturers to set up mother plants in
India and leverage India as an export hub. This strategy, along with
schemes to incentivise MNC OEMs to use India as a sourcing base,
creation of exclusive export hubs in industrial areas near ports, and
promotion of auto component MSME to create robust supply chain supply
chain, would help to double the exports in the auto and auto-component
sector to $30 billion by 2025-26, it said.
The Goenka-led
committee has also recommended development of three-four integrated mega
furniture hubs in proximity to ports for making India one of the key
furniture exporters to the US, the EU and the Middle East. Already, the
productivity-linked incentive scheme had been introduced for local
manufacturing in this high potential sector.
India's current
share in the global trade of furniture is less than 1 per cent. The
committee had said that this could be scaled up substantially over next
decade with a mix of incentive schemes and fiscal measures for zero duty
on imports of raw materials and clear and effective timber policy that
expands the certified source of wood plantations in India.
The
panel has said that fisheries exports from the country could be doubled
to $14 billion by 2025 and further double in next five years. For this,
it has suggested to increase the share of value-added products in
exports. It has also proposed to creation of port-based processing
parks for value addition of sea catch of other countries and development
of cold chain infrastructure along the coast and airports.
The
action in the toy sector would be require encouragement extended to MNCs
to use India as global manufacturing hub for exports and also help
develop a domestic vendor ecosystem for sub-components, the panel has
said.
It has also recommended development of mega toy
manufacturing clusters and reduction in customs duty on essential raw
materials. Suggestions has also been given for a dedicated toy policy
with focus on exports.
In its presentation to Commerce and
Industry Minister Piyush Goyal, the panel has set a target of doubling
textiles exports to $80 billion in next five years. It has suggested
creation of mega clusters to address cost competitiveness, productivity
and lead time for sourcing, distribution, and logistics.
The
committee had also recommended removal of anomalies of existing FTAs
like SAFTA and ASEAN, and establish sectoral PTA with Canada, the UK,
and the EU. It has also suggested to make India regional hub for
textiles fabric supplier with SEA countries, initiate government to
government discussions with Bangladesh, and Vietnam and branding Indian
textiles as a sustainable manufacturer.
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