TIES to focus on projects like custom points, cold storages

TIES, the new scheme for creating export infrastructure in states, will primarily focus on projects like customs checkpoints, cold storages at ports and last mile connectivity, a top official said.
Finance Minister Arun Jaitley in the Budget announced a new central scheme Trade Infrastructure for Export Scheme (TIES) to develop export infrastructure in states.
"In this scheme, we are looking at infrastructure projects like border haats, custom checkpoints, last mile connectivity, cold storage at ports," the commerce ministry official told PTI.
Unlike Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme, which was funded by the centre, the cost of projects under TIES will be equally shared between the Centre and states.

However, for north-eastern and the Himalayan region states, the centre will bear 80 per cent of the cost.
In this new scheme, the government would not get into areas like road construction, power sub-stations or parking spaces.

The commerce ministry has discussed the scheme with the states and they are ready for it, the official added.
The government announced TIES as the ASIDE scheme was shifted to states on the recommendations of the 14th Finance Commission. States have time and again raised issues that the export infrastructure should be looked after by the centre.
Indian exporters face huge challenges in terms of infrastructure, particularly in states. Inadequate infrastructure pushes their transactions costs, impacting competitiveness of Indian goods in the global markets.

Although the government has worked in this area but lot more needs to be done as the exporters are facing tough competition in the world market from smaller economies like Veitnam and Bangladesh.
Exporters body FIEO (Federation of Indian Export Organisations) said the scheme will help create modern infrastructure like last mile connectivity to ports, testing labs and certification centres.
Recording positive growth for the fourth month in a row, India's exports rose by 5.72 per cent to USD 23.9 billion in December on better performance by petroleum, engineering and pharmaceuticals segments.
Besides infrastructure, government is working on several fronts like ways to reduce logistics cost to boost exports. India is aiming to increase its share in the global trade to 3.5 per cent from the current 2 per cent by 2020.

Increase in trade helps in creating huge employment opportunities and boost economic growth.