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The Southern India Engineering Manufacturers’ Association (SIEMA), Coimbatore, has voiced fears that the cut in the focus product scheme incentive under the new Foreign Trade Policy (FTP) would work against the domestic pump industry.
However, it said that the policy has opened up new opportunities for not only existing but for new exporters as well.
In a release, V Lakshminarayanasamy, President, SIEMA, lauded some of the features of the new FTP that seeks to double exports in five years.
Easing export obligation
He welcomed the move to ease the export obligation for domestically sourced capital goods which was favourable for the capital goods sector.
He also felt that assisting states to prepare export strategies, constitution of export promotion mission to offer institutional framework to states, along with export promotion agencies would give a fillip to exports.
It was also a welcome feature to extend a helping hand to new entrepreneurs and the MSME sector in foreign trade by offering training through Niryat Bandhu Scheme.
FPS incentive cut
Lakshminarayanasamy, however, voiced his dismay over the move to cut the incentive under FPS from 5 per cent to 3 per cent which would work against the interests of domestic pump industry catering to the farm sector.
He said Coimbatore occupied a significant place in the manufacture and export of agricultural pumpsets and the decision would hit their growth prospects because of "competitive pricing of pumps from China and Italy''.
D Nandakumar, President, Indian Chamber of Commerce and Industry, Coimbatore (ICCIC), appreciated the steps like doing away with multiple schemes, acceptance of self declaration by certain status holders, online filing of applications, online inter-ministerial consultation etc., which he termed were "in line with Digital India and Ease of Doing Business''.
He said it was the "first time'' a trade policy had included issues such as ease of doing business, job creation, agriculture, transaction simplification, speed of approvals and even mobilising waste for exports. The focus on labour and special economic zone would provide an impetus to the 'Make in India' initiative.
Nandakumar urged the GoI to announce early the interest subvention scheme for the export sector.
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