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The Southern Region of Federation of Indian Export Organisations (FIEO) has sought an increase in interest subvention to exports.
Reacting to the annual supplement to Foreign Trade Policy 2009-14, Mr Walter D’Souza, Chairman of FIEO (Southern Region), said that the continuation of interest subvention of two per cent is welcome, but may not be good enough to propel the growth.
“Indian exporters are global players. They cannot compete with their peers who have the best infrastructure in the world, most skilled, and productive labour and pay interest of about one to four per cent.
“In sharp contrast, the Indian exporters are required to come to terms with no good infrastructure, lack of skilled and productive labour, and pay interest in excess of 10 per cent even after the benefit of interest subvention,” he said.
The interest subvention should be increased to at least four per cent. This will sharpen the level-playing field of Indian exporters, and can be instrumental in registering a growth in excess of 25 per cent during the current fiscal, Mr D’Souza said.
Domestic manufacturing
The move to encourage domestic manufacturing for inputs to the export industry will gradually reduce dependence on imports. This will boost the growth in the manufacturing sector, which has already starting registering a negative growth.
He said that permitting utilisation of duty scrips for payment of excise duty of goods from domestic market will help the manufacturing sector register a healthy growth this fiscal.
Mr D’Souza, who is also a cashew exporter, said that VKGUY (Vishesh Krishi Gram Udyog Yojana) scrips for some more agro exports, especially roasted cashew kernels, will ensure the distant dream of value-added exports of some of the Indian merchandises.
'Made in India' events
The proposal to have 13 ‘Made in India’ events abroad will ensure a platform for Indian exporters to showcase their strengths.
“The Union Commerce Minister’s initiative will go a long way in arresting the single-digit growth registered during April and May 2012, and may take it just a shade above the double-digit level.” Mr D’Souza added.
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