Exports should be treated as a national priority : PHD Chamber

PHD Chamber welcomes the annual amendments to the Foreign Trade Policy 2009-14 announced by the Government. The policy amendments aim to provide continuity to the exporters struggling to keep up with the adverse conditions due to the global meltdown. This was stated by Mr V C Jain, Chairman, Foreign Trade and Investment Committee, PHD Chamber.

Commenting on the Foreign Trade Policy, Mr Jain said exports should be treated as a national priority as it is done in other countries. The exporters should not be compared to the domestic industry but should be provided a level playing field vis-a-vis the international situation and companies with whom the Indian exporters have to compete.

Mr Jain said that the Chamber welcomes the extension of DEPB Scheme as also the extension and enlargement of scope of the Zero Duty EPCG Scheme, Status Holders Scheme, extending Interest Subvension of 2% to additional products, etc. This will provide the much needed stability to exporters to face the still very uncertain global economic recovery.

There have also been welcome announcements to simplify procedures with a view to reduce transaction costs. While the measures are good, direct benefits play an equally important role, such as the need to reduce rates of ECGC and CONCOR. It is important that the recommendations of the Committee on Transaction Costs set up by the Government earlier should be examined and implemented at the earliest.

Exporters continue to export taxes in the form of VAT, Service Tax and CST, since first paying and subsequently seeking refund takes a long time. Exporters should be exempted from these taxes.

With exports to the developed economies facing saturation, the increase in support under the Focus Market and the Focus Product Schemes has been very beneficial to exporters. It was hoped that some more countries would be added under the Focus Market Scheme. Unfortunately this does not find a mention in the announcements.

While the policy amendments have provided continuity of export promotion measures, it was necessary to address issues such as timely export credit at internationally competitive rates, providing inputs at international prices, safeguard to exporters against dollar fluctuations, etc. It is also important to ensure the implementation of the announcements made expeditiously.

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