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In its pre-Budget conference with the money ministry, Federation of Indian Export Organisations (FIEO) President Ashwani Kumar has actually additionally required expansion of the 5 percent Interest Equalisation Scheme (IES).
Higher tolls on China can produce a substantial chance for Indian exports, states the Federation of Indian Export Organisations.
Exporters on Thursday looked for a fund of Rs 750 crore for 3 years to touch USD 25 billion export possibility in the United States, intending to take prospective possibilities that might develop as the United States President- choose, Donald Trump, has actually intimidated to enforce high tolls on Chinese items.
In its pre-Budget conference with the money ministry, Federation of Indian Export Organisations (FIEO) President Ashwani Kumar has actually additionally required expansion of the 5 percent Interest Equalisation Scheme (IES).
” An advertising plan to concentrate on the United States with a corpus of Rs 250 crore each year (Rs 750 crore total) for 3 years might be introduced to create extra exports of USD 25 billion,” Kumar said.
He said that higher tariffs on China can create a significant opportunity for Indian exports, particularly in sectors where China has previously been a dominant supplier.
Based on a study undertaken by FIEO, India can replace China in sectors like electronics and electrical equipment (USD 10 billion additional export potential), textiles and garments, toys, chemicals, auto components, footwear, furniture and home decor.
He added that India’s marketing strategy for exporting products to the US should focus on several key areas, particularly on marketing and forming strategic partnership.
“We have already started contacting key trade associations to present India’s sourcing opportunity,” Kumar claimed, including, “We ought to concentrate on joining a lot of events in these fields”.
On interest rates, the President said that the IES is currently available only till December 31, 2024, and that too to manufacturers in MSME (micro, small and medium enterprise) with an annual cap of Rs 50 lakh per IEC (import-export code) holder, which is insufficient for many MSMEs.
He said India experiences higher domestic interest rates compared to its competitors, especially advanced economies or countries with export-driven economies like China, Japan, South Korea, Euro Zone, Thailand or Malaysia.
This makes financing for Indian exporters more expensive than for exporters from these countries.
“If the IES is extended, it would help level the playing field by reducing the cost of credit for Indian exporters, improving their price competitiveness in the global market,” he claimed.
“For MSMEs, we ought to try to find recovering 5 percent subvention as it was decreased to 3 percent when the repo price obtained decreased to 4.4 percent. With the repo price going up by over 2 percent, it makes a solid instance for recovering subvention to the initial degree of 5 percent and 3 percent, specifically,” Kumar noted.
The exporters also sought tax benefits on R&D, and infusing more equity to encourage large private sector shipping lines so that international trade happens through domestic shipping lines.
“We are remitting over USD 100 billion as transport service charges annually and shipping freight is a major component of the same,” he claimed.
Further, the treasures and jewelry market merchants prompted monetary assistance for the ruby market for customer education and learning as the market is observing a continuous autumn in exports.
They suggested the federal government to expand facilities condition for jewelry parks to make sure that the programmers can obtain simple accessibility to financial institution credit history.
The export promo treasures and jewelry export promo council (GJEPC) is establishing the globe’s biggest jewelry park in Mumbai.
“Similar parks are showing up at Meerut andBengaluru I recommend to consist of jewelry parks in the harmonised listing of facilities,” GJPEC Chairman Vipul Shah said.
The council has also asked for duty drawback benefits for platinum.
On declining export credit, FIEO Director General Ajay Sahai said it is not keeping pace with the rising exports.
“We have seen a decline of 5 per cent in export credit between March 2022 (Rs 2,27,452 crore) and March 2024 (Rs 2,17,406 crore). Exports during this time have risen by 15 per cent in Indian rupee terms,” Sahai claimed.
“The absence of security totally free is a large difficulty,” he said, adding that though the export sector is under the priority sector lending (PSL) but the flow of credit has not improved.
Export credit under PSL on July 1, 2022, was Rs 19,861 crore and it has declined to Rs 11,721 crore on June 28 this year, which is a dip of over 40 per cent, Sahai said.
Trump has threatened to impose new tariffs on Mexico, Canada, and China as soon as he takes office.
The US is the largest trading partner of India in 2023-24. India’s exports stood at USD 77.51 billion, while imports aggregated at USD 42.2 billion in the last fiscal year.
During the April-October period in the current fiscal year, the country’s exports to America rose 6.31 per cent to USD 47.24 billion, while imports grew 2.46 per cent to USD 26 billion.
Trade experts stated that Indian exporters may face high customs duties for goods such as automobiles, textiles and pharmaceuticals if the new US administration decides to pursue the ‘America First’ agenda, opined trade experts.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
