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| Govt looking ways to cut transaction cost for exporters |
| Press Trust of India / New Delhi Aug 26, 2009, 17:44 IST |
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The government today said it is looking at steps to reduce transaction costs and time required for carrying out exports, which are on the downslide since October 2008.
Commerce and Industry Minister Anand Sharma said the state governments could play a vital role in bringing down transaction costs and timely movement of goods.
"... We are looking at future improvements as to what more we can do ... Cooperation of states will help in bringing down the transaction cost (of exporters)," Sharma told reporters here at an ICRIER function.India unveils its foreign trade policy tomorrow and is likely to announce steps to help embattled exporters.
An exporter has to deal with different agencies, including the Customs Department, DGFT, various port authorities and state departments, while sending a consignment abroad, which adds to the transaction costs and time.
According to exporters, transaction costs vary from sector to sector and range between 5 and 8 per cent of the freight-on-board value of the consignment.
The minister said that transaction cost can be reduced "if there is faster movement (of goods), delays are reduced, simplified procedures (for completion of paper work) and on-line approvals (of applications for duty refund and other things) are there". India's exports in 2008-09 grew by merely 3.4 per cent to $168 billion.
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