Exim Bank seeks sops for manufacturing sector

 

The Export Import Bank of India (Exim Bank) has sought new schemes for the manufacturing sector in the upcoming Union budget for 2013-14.

“We have urged the finance ministry for introduction of new schemes for allowing foreign direct investment (FDI) in engineering and high tech goods manufacturing in India as we import about 90 billion dollars of high-tech goods”, said TCA Ranganathan, chairman cum managing director, Exim Bank.

“If a portion of the imported goods can be manufactured in India, we will be able to reduce the current account deficit”, he said and added that manufacturing sector contribution to the country’s gross domestic product is only 15 per cent and it should be increased to 20-23 per cent.

Speaking at an interactive session organized by Utkal Chamber of Commerce and Industry (UCCI), an apex body of trade and industry in the state, he rued that the exports from Odisha is only USD 7 billion while a neighbouring country Bangladesh exports USD 27 billion worth of goods despite being 20 per cent less in size.

Exim Bank chief said, it’s now time for the entrepreneurs to introspect why the exports from the state are not growing even if there is potential.

Ranganathan stressed on export of more value added products in agriculture and engineering sectors. “Products like neem oil, maize and rice could be value added and exported”, he said.

Among others, Exim Bank Chief General Manager Samuel Joseph, Director of Industries Nityananda Palai and Ramesh Mohapatra, President, UCCI also spoke.