Saraf calls for a National Shipping Line to help exporters
Positive growth of about 5.5% with US$27.24 billion of exports show not only signs of better order booking position but further improvement in coming months and the new fiscal, reiterated FIEO President Sharad Kumar Saraf.
But he urged the government to soon notify the Remission of Duties or Taxes on Export Products (RoDTEP) RoDTEP rates, which will remove uncertainty from the minds of the trade and industry thereby forging new contracts with the foreigner buyers.
The monthly (Jan 2021) exports further moved northward towards positive territory with almost all major export category products showing impressive growth with signs of further revival, said Saraf in reaction to the latest export data.
The January exports also signals that traditional and labour-intensive sectors of exports (except apparels and leather) have already passed the most challenging and testing times, he noted in comments on 2 Feb 2021.
Exports of other cereals along with oil meals, iron-ore, cereal preparations and miscellaneous processed items, jute mfg. including floor covering, tobacco, rice, fruits and vegetable, carpet, handicrafts excl. hand-made carpet, spices, ceramic products and glassware, engineering goods, drugs and pharmaceuticals, electronic goods, tea, cashew, plastic and linoleum, mica, coal and other ores, minerals including process, cotton yarn, fabrics, made-ups, handloom products etc., coffee and organic and inorganic chemicals showed either a very high or impressive growth or were in positive territory showing signs of further revival, believes Saraf.
He also noted negative growth in exports of major products including petroleum products, leather and leather manufactures, RMG of all textiles, man-made yarn/fabrics/made-ups etc., meat, dairy and poultry products, oil seeds, marine products and gems and jewellery which are major constituents of India’s export basket and mainly related to labour-intensive sector of exports have also been of key concern during the month.
However, an increase in imports during January 2021 by just 2.05% to US$41.99 billion compared to the same period during the previous fiscal led to a trade deficit of US$14.75 billion, which is a decline of 3.57% during the month.
Effectiveness of the Covid-19 vaccines have also led to bring both life and economy back on growth trajectory with a V-shaped recovery projected not only in world trade but the Indian economy as well, hoped Saraf.
The FIEO Chief also reiterated that the government must address some of the key issues including release of the required funds for RoDTEP, MEIS and clarity on SEIS benefits, adequate availability of containers, softening of freight charges, resolving risky exporters issues and allocation of funds for NIRVIK Scheme.
Besides long pending demand for the creation of an Export Development Fund for marketing of Brand India products and various other infrastructure bottlenecks with regard to customs and port clearances, will further help in giving a boost to our exports taking it to pre-Covid growth trajectory.
The Union Budget 2021-22 has also rightly put its focus on infrastructure to revive the economy, address the job loss and support the industries providing inputs for infrastructure at a time when it was most needed, added Saraf. A world class infrastructure will go a long way to make our manufacturing and exports competitive besides reducing the logistics cost.
The setting up of seven mega investment Textile Parks would attract investment in the sector, bringing the cutting-edge technology and creating the economy of scale so as to compete with South Asian and South East Asian competitors.
The levy of agri-cess will help in creating agri infrastructure reducing the wastage and enhancing the quality of agri products. Lack of infrastructure is also affecting the prices of the agri commodities, he pointed out. The various facilities for fisheries will push marine exports of the country which has yet not reach anywhere near its potential.
The FIEO President said that privatization of the management of major ports will bring the necessary efficiency thereby reducing the cost benefitting the exim community. He hoped that the Government will bring a policy to develop a National Shipping Line to take a major share of India’s exim trade.
Saraf reiterated the need for the Government to allocate the requisite funds for RoDTEP, MEIS and SEIS so that the uncertainty is removed and exporters’ past claims may be released quickly as the same has severely eroded their liquidity. #exports #management #orders #contracts #investment #budget /fiinews.com
