FIEO seeks state govts support for exports sector growth

FIEO suggests states to enhance ease of doing business and reduce transaction cost as well as time

Points put forward by FIEO at the first meeting of Council for Trade Development and Promotion at New Delhi on 8th January, 2016

1. States have very important role to play in promoting India's exports as all factors of production lies within the ambit of States. The support of State would immensely benefit the exports sector by enhancing the ease of doing business and reducing transaction cost as well as time.

2. Indian exporters are facing tough competition globally, particularly MSME segment who have limited resources. Delay in refund of state levies adversely effect the liquidity position of small exporters. States should ensure to put in place a mechanism for timely clearance of such dues. In any case online filing, tracking and refund would be a part of State GST also and thus such action will prepare States to address GST concerns as well.

3. Secondly, in India roads carry nearly 65% cargo against the global trend where railway is the major contributor. Therefore States should focus on improving the last mile connectivity of major exporting hubs to ICDs/Ports. Quality of road including their load bearing capacity may be upgraded for smooth transit of export goods.

4. Another area where the export industry would require support of State Government is to push for electricity duty under State GST as the incidence of electricity duty for few sector is quite high.

5. Geographical Indications(GI) helps to protect interest of a nation as a whole as well as to fetch better margins for a product. States should be pro active in supporting Associations in identifying products that may qualify for obtaining Geographical indication (GI) tag.

6. Few States have stringent exit norms for units under Industrial estates and such estates also lack the basic trade infrastructure. States may review all industrial Estates in terms of their utilization and infrastructure for corrective measures that would indeed help the industry.

7. Devising proper exports strategies needs accurate supporting trade data to understand the trends which is lacking. States should sensitize exporters and other stake holders to correctly put the States Code for which drop down menu has been provided by the Customs.

8. Lastly, we would urge the States that besides, the marketing assistance available under various Central Government schemes, States may consider introducing similar schemes particularly for sectors having export potential.

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