Sharad Kumar Saraf, president, Federation of Indian Exporters Organisations, while commenting on the Union Budget 2020-21, said that initiatives to improve infrastructure and the proposed announcement of the new logistics policy will make the logistics efficient and help Indian exporters as infrastructure bottlenecks affect their supply chain.
He applauded the 16 action points by which, he believes, the Union budget has made an effort to structurally change agriculture, horticulture and pisciculture, and make India a major player in agro exports in the medium and long term basis besides simultaneously doubling the farmer’s income.
Consider the challenging times
Sharad hopes that the Finance Minister will consider the challenging times being faced by exporters as can be seen from the lack of growth in exports in spite of various opportunities thrown up due to US-China trade war and other geopolitical issues. Prime Minister has rightly acknowledged exports as an important component of economic growth. Saraf expects some relief to exporters in the supplementary budgetary provisions that may come up during the debate on the budget including legacy dispute scheme for customs duty on the lines of direct tax disputes.
One district one product
“The one district one product can be a game-changer for exports. Substantial exports can be targeted by focusing at the district level besides creating exports culture in India. Such a strategy will be extremely helpful for the upliftment of artisans and craftsmen. However, the scheme should be supplemented by forming “District Exports Council” on the pattern of the United States and Germany to make districts vibrant and active partner in exports. Active involvement of district collector is essential for this scheme to succeed,” added FIEO chief.
The new scheme for electronic sectors including mobile, semi-conductors and electronic equipment is expected to pave the way for increasing electronics exports from the country particularly of the mobile in which substantial domestic capabilities have already been created resulting in exports of mobile phones from India to Middle-East, South Asia and Africa.
Sharad said “the scheme of NIRVIK will ease the lending process and enhance the availability of credit to exporters. Under the Scheme, the insurance over guarantee will now cover up to 90% of the principal and interest both on pre & post-shipment credit. The ECGC currently provides such guarantee only up to 60% of the loss to the banks.”
Digital payment of the taxes
President FIEO added that the new scheme to provide digital payment of the taxes which have not been integrated under GST like electricity duty or products & services not covered under GST such as petroleum products and electricity will help in providing some more competitiveness to our exports and moving towards the avowed objective of zero rebating of exports.