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Caution urged on phasing out export subsidies

Six-point agenda suggested for making Indian exports competitive

 

After Commerce and Industry Minister, Mr Piyush Goyal, talked about phasing out export subsidies and asking the trade not to be dependent on them, the Chairman, Trade Promotion Council of India (TPCI), Mr Mohit Singla, has said that the government needs to take a gradual and cautious view on this matter, as the buyers also negotiated and demanded some part of the subsidy.

 

While congratulating the Minister for setting the ball rolling by immediately convening the Board of Trade and Council of Trade Promotion and Development meeting, Mr Singla also suggested a six-point agenda which may be strategised for making Indian exports competitive.

 

To begin with, there is a need to identify a new product basket that can easily find markets compared to our global competitors as India has an inherent advantage. The emerging champion sectors could be electrical, furniture and mattress, and processed food. For example, processed food alone has huge scope after value addition.

 

Then comes external outreach and promotion of Indian products to new and emerging markets. India could utilise 80 trade promotion offices working on already accepted global norms for promotion of various products and brands from the country.

 

The third is creating a national portal for global trade inquires, to be run/managed by respective Export Promotion Councils which could handle queries on day-to-day basis.

 

Fourth could be incentivisation above basic target—encourage the performers by linking it with performance and target, be it EPCs or any other body or organisation.

 

The fifth is the availability of credit for the industry both in terms of intermediary and finished goods for exports.

 

Finally, reducing the cost and time of port clearance for goods for export is very important. Port charges in India should be reduced as it makes Indian exports less competitive compared to the rest of the world. Number of days for port clearance and logistics cost per km of road transport should also be brought down, it was suggested, as per a release.

 

Source : Exim News Service - New Delhi, June 11

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