New Delhi: The government will set up an Export Promotion Mission and extend 24x7 customs clearance facility to 13 more airports to boost overall exports of the country.
While presenting Budget 2014-15, Finance Minister Arun Jaitley on Thursday said exports couldn’t be exponentially increased unless the states play an active role in export promotion by providing good infrastructure and full facilitation.
"It will be our endeavour to engage with the states to take India's exports to a higher growth trajectory. It is proposed to establish an Export promotion Mission to bring all stakeholders under one umbrella," he said.
To reduce transaction costs, improves business competitiveness and fasten the clearance of import and export cargo, he said, measures are being initiated to extend the existing 24x7 customs clearance facility to 13 more airports in respect of all export goods.
This facility would also be extended to 14 more sea ports in respect of specified import and export items.
The minister also proposed to implement an 'Indian Customs Single Window Project' to facilitate trade.
Under this, importers and exporters would lodge their clearance documents at a single point only.
Required permissions, if any, from other regulatory agencies would be obtained online without the trader having to approach these agencies.
"This would reduce interface with governmental agencies, dwell time and the cost of doing business," he said.
Reacting to the Budget, Federation of Indian Export Organisations (FIEO) President M Rafeeque Ahmed said that the steps announced in the budget would help in increasing exports and improving ease of doing business in India.
"Once implemented, the infrastructure improvement would significantly compress the delivery schedule of exports.
Engagement of states in exports is a long due step as all factors of productions are within the ambit of state. Active dialogue with states will help in removing their apprehension that exports is a drain on their exchequer," Ahmed said.
He added that the Export Promotion Mission would provide an effective resolution to the issues within minimum time frame.
India's exports in the last three years have been hovering around USD 300 billion. India's exports in 2013-14 fall short of the USD 325 billion target and managed to reach USD 312.35 billion. The country's exports stood at USD 300.4 billion in 2012-13 and USD 307 billion in 2011-12.
Infrastructural bottlenecks and cumbersome customs procedures increases transactions cost of exporters.
According to industry experts, the quantum of transaction cost is 7-10 per cent of the total value of Indian exports. This amounts to a significant about USD 15 billion.
