Reduction of subsidy hits exporters badly
PM Narendra Modi
New Delhi: Exporters, who have been hit due to slowdown in key markets, on Thursday asked the government to review the benefits announced in the new Foreign Trade Policy (FTP) to sustain the growth during the tough global economic situation.
Federation of Indian Export Organisations (FIEO), president S.C. Ralhan said that the reduction of rates in Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) have hit the exporters badly.
“While we appreciate the move to take exporters away from subsidy, the timing of the move probably is not correct,” said Mr Ralhan. He said that it is important that the percentage of benefits being given should be increased and if not possible at least the same may be restored to the level prevailing earlier.
“The incentives being given to exports sector is less than one per cent of the total exports, which is a minuscule amount. And therefore FIEO is of the view that there is an urgent need to review the benefits announced in the new Foreign Trade Policy to sustain the exports growth in such a situation when the global economies, with the exception of a few, are reeling under intense pressure except for a few,” he said.
India’s exports in 2014-15 had contracted by 1.23 per cent to $310.53 billion. Last month FIEO had said that it will be difficult to even achieve $300 billion exports in 2015-16 due to tough market conditions.
BJP led NDA government in its Foreign Trade Policy (FTP) 2015-2020 has targeted to raise India's share in world exports from two per cent to 3.5 per cent by 2020. FTP seeks to nearly double India's exports (services and merchandise) to $900 billion by 2019-20 from $466 billion in 2013-14.
( Source : dc correspondent )
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