FIEO sees exports reaching $350 bn this fiscal

Sets 5-year export target at $750 bn; says India should consider an FTA with China

Ahead of release of the new Foreign Trade Policy (FTP), the Federation of Indian Export Organisations (FIEO) is expecting merchandise shipments from India to reach $350 billion compared to $312.35 billion last financial year even as it pressed for reviving the Special Economic Zones and trade pact with China.

Exporters also said that under the FTP, which is expected to be released by mid-September, the government should create an Export Development Fund that will help exporters in increased marketing of their products.

"We reiterate our request to create an Export Development Fund for sustain marketing during 2014-2019 with a target of $750 billion. This would require a CAGR of 19.14% during 2014-19," said M Rafeeque Ahmed, president, FIEO.

Ahmed said new sectors like services, project exports, e-commerce, defense and aerospace should also get proper coverage and facilitated under the gambit of the new FTP which will be effective a period of five years.

Besides, Ahmed also urged for a free trade agreement (FTA) with China and said that Indian industry and exporters should not fear Chinese competition and seek greater investments through the trade route.

However, he also said that the cost of production in rising in China. As a result, a plethora of businesses are relocating from there. Hence, Ahmed said India should grab this opportunity and create conducive environment for these business to come and make India their base.

On the recent trade sanctions by the US and EU on Russia, Ahmed said this should be seen as "entry opportunity" for Indian exporters.

"Sanctions on Russia should serve as an opportunity for India. They are looking at South Africa, Australia and Poland to import items. They should look at India rather so far away. We have to make our presence felt there and should market our products aggressively," he added.

According to Ajay Sahai, director general and CEO, FIEO domestically the government should propel manufacturing by reviving the Special Economic Zones (SEZ). He said that the government should immediately withdraw minimum alternate tax (MAT) and dividend distribution tax (DDT) from the SEZs and bring back investors' confidence.

Additionally, FIEO asked the government to make bring exports under the ambit of priority sector lending by the Reserve Bank of India (RBI). It also demanded extending the benefits of 3 per cent interest subvention scheme to all sectors and extend it will March 2017.

During the April-July exports have reached $107. 83 billion compared to $99.28 billion, according to the Ministry of Commerce and Industry data.

Under the previous government an export target of $500 billion was fixed for 2014-15 as part of a strategy paper for doubling Indian exports.