The Associated Chambers of Commerce and Industry of India said that although current slowdown temporarily weakened pace of exports, India should be undeterred with it and draw up ambitious export strategy of USD 300 billion by 2014 as developing and economies of scale will have completely recovered by then to absorb Made in India brands.
In its assessment of Process of Future Exports, to be submitted to Ministry of Commerce and Industry shortly by Dr Swati Piramal President Associated Chambers of Commerce and Industry of India said that export zone required sustained support as it suffered the most during economic downturn.
Dr Swati Piramal said that “WTO talks should be resumed for conclusive discussions and a trade off between Western demand on agriculture, trade and emerging countries demand on labour migration has to be stuck, considering India has over 700 million rural population of take care against US’s 12 million and the West including Japan are in need of large manpower.”
Dr Piramal pointed out that India therefore needs to repeatedly alert World Trade Organization on rise of protectionism in the US and Europe and their consistent refusal to allow generic Indian formulations into their countries.
Dr Piramal said that after successfully lobbying for cause of India as identified above a national goal for exports of USD 300 billion by 2014 would be a step in the right direction for which consultation process should begin now between authorities and stake holders concern.
In its multi-pronged strategy for accelerating India’s export competitiveness, the ASSOCHAM has also suggested removal of MAT on exports and instead these should be brought into subsidy net. Allocation of incentives for creation of separate births on major ports and substantial reduction in existing freight trade are also need of hour.
In addition, it has stressed need for exports subsidization on lines of economies of scale including that of China to create adequate space for Indian products in overseas markets particularly those of Africa, Latin America, Nepal, Srilanka, Bhutan, Burma, Bangladesh and Pakistan.
Export subsidies need to be extended to Indian exporters by substantially reducing excise and local levies and other export duties including import duties on inputs required to make finished products for exports.
This measure is called for present times in which export competitiveness is urgently required since China does it and other economies of scale also follow it.
According to ASSOCHAM, India will be able to create a space for its products in overseas markets and earn for it a reasonably substantial foreign exchange since there is a huge difference between imports and exports of India as it needs foreign exchange to correct trade imbalances in India’s exports and imports.
Capacity expansion drive of ports and airports should be done at accelerated pace for which incentives and fiscal support needs to be extended by government and financial institutions so that separate births are create in ports to preserve and then move export consignments to their required destinations.
Source : Steelguru