India is likely to miss the exports target for the fourth year in succession, unless the Centre steps in and takes corrective measures, said the Federation of Indian Export Organisations (FIEO).
Last year, India recorded exports of $310 billion against the target of $340 billion. The current year export target is set at $310 billion. From April to July, 2015, the country exported goods worth $89.88 billion. The exports from southern states were $72.5 billion — Tamil Nadu alone accounted for $34.75 billion. In percentage terms, it was 23 per cent and 11.20 per cent, respectively.
Southern Regional Chairman of FIEO, A. Sakthivel said: “For the last three years, the exports have been hovering around $300 billion. For the current year too, exports performance has been weak due to poor global demand. Devaluation of Chinese yuan has also added to our woes. Going by the current trend, we might close the year with exports of about $300 billion. However, we are requesting the Centre to step in and reverse the negative trend to achieve the target.”
FIEO urged the Centre to help exporters by immediately reintroducing the interest subvention at 3 per cent; speeding up refund of duty claims of about Rs.4,500 crore on all India basis and including more products and countries under the Merchandise Exports from India Scheme.
Mr. Sakthivel also called for increasing the investment limit to MSME for procuring plant and machinery from the present Rs.1 crore to Rs.5 crore and allocating more funds for Marketing Assistance Scheme.
“At present, the Union government allots Rs.250 crore for promotional activities. But to achieve a export volume of $340 billion, the Centre should set aside at least Rs.2,000 crore under the Marketing Assistance Scheme. The government should reduce paperwork and encourage investment in plant and machinery by giving some more facilities such as investment allowance, and depreciation, etc.,” he said.
He also called for improving port facilities. “None of the mother vessels are calling the Southern ports. Right now, our cargoes are sent to Colombo and Singapore ports. Unless, we improve our facilities, we can’t expect good jump in export volumes,” he said.
To turn “Make-in-India’ a successful campaign, he suggested creation of a separate chapter in the Reserve Bank of India policy for exporters separately and provide interest at 7 per cent. Besides, he called for concluding Free Trade Agreement with Europe and Comprehensive Economic Partnership Agreements with Australia, New Zealand and Canada immediately.
