The marketing support provided through the Market Access Initiative (MAI) of the department with a corpus of ₹200 crore (~$24 million) is ‘grossly inadequate’ to support the big target for exports, FIEO noted.
The Federation of Indian Export Organisations has suggested the government to develop an Indian shipping line of global repute; extend the Interest Equalisation Scheme for five years; and offer a recurring annual budget of $60 million to showcase products and services globally.
The zero rating of exports should not be limited to budget constraints, it said.
The suggestions were offered by FIEO president Ashwani Kumar during a pre-budget consultation meeting with finance minister Nirmala Sitharaman, an FIEO release said.
India’s outward remittance on transport services is increasing with rising exports. The country remitted over $109 billion as transport service charge in 2022, and this this is expected to touch $200 billion by 2030. A 25-per cent share by an Indian shipping line can save $50 billion on an annual basis basis and also reduce arm twisting by foreign shipping lines, FIEO said.
The zero rating of exports should not be limited to budget constraints, it suggested.
Looking at the rise in interest rates consequent to increase in repo rate from 4.4 per cent to 6.5 per cent in the last two years, the subvention rates may be restored back from 3 per cent to 5 per cent for micro, small and medium enterprises in the manufacturing sector from 2 per cent to 3 per cent for all in respect of 410 tariff lines, FIEO added.
Fibre2Fashion News Desk (DS)