Fieo Outlines Export Agenda For New Govt

The Federation of Indian Export Organisation (FIEO) will urge the new government to accord top priority to exports and announce long-term trade and fiscal policies after consultations with export promotion councils and the FIEO.

Speaking to newspersons after a meeting with the regions exporters here, FIEO president Ramu Deora said they would also demand that no structural changes be made in the policies thereafter without the consent of these two bodies.

Based on interaction with exporters, the FIEO felt this was essential in the present political situation, he added.

He said the new government should distinguish between a person who earns crucial foreign exchange from one who spends it.

 

The FIEO would also demand simplification of operational procedures to inculcate an export culture and ensure support to exporters in processing transactions at the ground level.

Deora said they would also demand giving units exporting more than 50 per cent of their production the freedom to hire and layoff workers and amending the current labour laws to enable export units to maximise production and exports at the lowest cost.

He said the government would also be urged to remove all levies including sales tax and octroi on domestic procurement of raw material and packing material on export products.

Alternatively, the Centre and states should reimburse the same, as was being done before July 1991 through the commerce ministry, to enable Indian exports to become competitive, he said.

He said all export related incentives and reimbursements like special import licence and exim scrip should be exempted from state levies.

He demanded the continuance of income tax benefits available to exporters under section 8-HHC for at least five more years.

He said the export sector had not been doing well over the last 18 months. In 1996-97, the export growth was a mere 4 per cent compared to 21.38 per cent in the previous year. In the current fiscal, growth till November was around 5.16 per cent due to adverse circumstances, both at home and abroad, he said.