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India Inc has lauded the new Foreign Trade Policy and believes it could achieve the stated export target of $900 billion by 2020.
“The policy is inclusive, having spoken about job creation, agriculture, and even mobilising waste for exports. It’s the first time a trade policy has included subjects like the ease of doing business, transaction simplification, speed of approvals etc. so it’s a positive,” said Ajay Shriram, President, Confederation of Indian Industry (CII).
He added that the five-year programme focusing on the ease of doing business, labour-orientation and highlighting the importance of special economic zones (SEZs) would bolster the ‘Make In India’ initiative.
“Concerted and partnership-based efforts of Government and business would certainly be able to raise India’s share in world exports from the present level of 2 per cent to 3.5 per cent by 2019-20,” said A Didar Singh, Secretary General, FICCI.
Difficult environment“Against the backdrop of a difficult global trade environment, the new policy is a bold initiative to increase competitiveness of Indian products. The boost to e-commerce and services exports is well-timed and takes into account the shift in the business paradigm,” said Rana Kapoor, President, Assocham.
Kapoor noted the significance of States being involved in devising export strategies given their role in increasing or reducing transaction costs. “An incentive to the capital goods sector by bringing flexibility in the export obligation is also a welcome step,” he added.
Meeting targets“Reaching the $900 billion target will require coordination with Customs and Excise Departments since exporters have a problem with tax refunds. If ease of doing business is taken care of, we can touch at least $700 billion,” said SC Ralhan, President, Federation of Indian Export Organisations (FIEO).
India’s total exports amounted to $465.9 billion in 2013-14.
Exports slid by over 15 per cent last month year-on-year to $21.54 billion.
“We should see a net 1 per cent growth overall, it depends on the March numbers. If the Centre effects these changes, exports can rise by as much as 20 per cent next year,” added Ralhan.
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