MUMBAI: FIEO President Mr S C Ralhan’s talking points for the meeting of Council for Trade Development and Promotion :
1. States have very important role to play in promoting India’s exports as all factors of production are within the jurisdiction of the States. FIEO would like to flag a couple of points where support of State would immensely benefit the exports sector in terms of enhancing the ease of doing business and reducing transaction cost as well as time.
2. We require support of the States so that exports do not face the liquidity problem under the GST. The Merchant Exporters, who at present avail exemptions through various forms, may be given the same facility under GST. We have many meetings with the Central Government but they feel it will be possible only if the States agree to the same as Exports are subject to IGST which has both Central GST and State GST component. The exemption from IGST on the final product procured for exports would help in easing the liquidity as cost of credit in India is much above the international benchmark.
3. Similarly, inputs used in exports, whether imported or domestic can be obtained duty free currently either through advance authorisation or under excise bond. We want the same to continue under GST and thus seek State Government support in the matter. Exemption for Exports should not be treat like any other exemption which lower the revenue collection as refund for exports, in any case has been provided, and the exemption only add to the liquidity of exporters who can use the money for marketing etc.
4. Indian roads carry nearly 65% cargo against the global trend where railway is the major contributor. Therefore States should focus on improving the last mile connectivity of major exporting hubs to ICDs/Ports. Quality of road including their load bearing capacity may be upgraded for smooth transit of export goods.
5. Geographical Indications (GI) helps to protect interest of a nation as a whole as well as to fetch better margins for a product. States should be pro active in supporting local Associations in identifying products that may qualify for obtaining Geographical indication (GI) tag.
6. Few States have stringent exit norms for units under Industrial estates and such estates also lack the basic trade infrastructure. States may review all industrial Estates in terms of their utilisation and infrastructure for corrective measures that would indeed help the industry.