Exporters demand incentives to meet $200-billion target

Exporters today told Finance Minister Pranab Mukherjee that exports from the country could reach the $200-billion mark in 2010, if they were supported through a stimulus package covering tax breaks, market development incentives and cheaper credit.

“Our requirements need to be met so that competitiveness increases,” said Federation of Indian Export Organisations President A Sakthivel after meeting Mukherjee.

Key demands made by the exporters in the pre-Budget meeting include exemption from fringe benefit tax as well as faster refunds of service tax. In addition they also called for an interest rate of 7 per cent for exports-related credit. Moreover, exporters proposed a Rs 5,000-crore fund, which could be used to market Indian products in emerging overseas markets like East Europe, Latin America or Africa.

Exports have been dipping for seven months in a row ending April as orders from the US and the EU declined in the backdrop of the global financial crisis. In 2008-09, overseas sale of Indian goods expanded by just 3.4 per cent and stood at $168.7 billion.

“There have been inquiries from overseas clients but we have not been able not to convert them to orders,” Sakthivel added.

Exporters have pitched for an investment of Rs 1,50,000 crore by the government in the textile and apparel sector to enable marketing and skill development.

“The global apparel market is growing at a rate of about 6 per cent. However, India is lagging behind with a share of just 2.6 per cent. Countries like China, Vietnam and Bangladesh have performed much better due to cost competitiveness,” said Apparel Export Promotion Council Chairman Rakesh Vaid.

Pharma exporters assured the government that exports from the sector could reach $20 billion by 2012, three years ahead of the scheduled target, provided they were given adequate attention.

“The government has to help us consistently and not in piecemeal solutions,” said Venkat Jasti of the Pharmaceutical Export Promotion Council.