Exporters today welcomed the Foreign Trade Policy which has put on their platter among other things subsidised credit as also enabling them to diversify into newer markets.
Mr Sunil Vachani, Chairman, Electronics and Computer Software Export Promotion Council, welcomed the extension of the DEPB scheme up to December, 2010.
He said that the Government should put in place an attractive replacement to the DEPB scheme instead of extending it every year.
ESC also said changes in the EPGC scheme and steps for diversification of destinations for Indian exports to regions such as Africa , Latin America, the CIS and Oceania are in the right direction.
However, it is felt that incentives for exports to these destinations should be more to help exporters to scout these markets more frequently.
User-friendly
The Assocham has termed the FTP as “user-friendly” as it focuses on creation of demand for Indian products in new 26 markets to help exporters distribute and diversify their risks.
Its President, Mr Sajjan Jindal, has said enhancement in exports incentives especially raising them from 2.5 per cent to three per cent under the Focus Market Scheme.
The FICCI President, Mr Harsh Pati Singhania, said, “Incentives for technological upgradation such as zero duty EPCG benefit and one per cent additional duty credit for status holders for several important sectors would greatly help in stepping up India’s competitiveness”.
Mr A. Sakthivel, President, Federation of Indian Export Organisation, said that the new policy has put emphasis on market diversification as our traditional exports have been hit badly due to their concentration in the US and the EU regions. He also welcomed the formation of a committee to ensure availability of dollar-denominated credit which will particularly benefit the MSME exporters.
Mr Chandrajit Banerjee, Director General, CII, said, “The continued thrust on procedural simplification for exports will reduce transaction costs for Indian exporters.”
The EEPC India Chairman, Mr Aman Chadha, said, “While enhancing dollar credit is a step in the right direction”. He urged that there is a need to “enhance the availability of credit for exporters” as a concept. This can be done not only by lowering credit cost, especially export credit, but also by enhancing VAT refunds, greater flexibility in Cenvat credit and zero rating of exports.
Handicrafts
The Export Promotion Council for Handicrafts Chairman, Mr Raj Kumar Malhotra, said the handicrafts have been given a due recognition in the Foreign Trade Policy by including all handicrafts items as ‘special focused products’. The sector has also been included for higher allocation for market development assistance and market access scheme.
The Sports Goods Export promotion Council Secretary General, Mr Tarun Dewan, said the focus product benefit available to sports goods has been reduced from 6.25 per cent to five per cent.
“Despite being a labour intensive sector, the incentive to this sector has been reduced, whereas all other labour intensive sectors have been given enhanced benefit,” he said.
Source : Business Line