FTP to impart competitiveness to exports: India Inc

Written by fe Bureau | New Delhi/Chennai | Updated: Jun 6 2012, 07:42am hrs
Exporters and India Inc alike gave the thumbs up to the Foreign Trade Policy (FTP), saying it will help impart competitiveness to exports.

The positive move of allowing duty-free scrips under export promotion schemes for payment of excise duty is worth special mention. This is indeed significant and will help exporters in procuring from domestic manufacturers, said Ficci president RV Kanoria.

Federation of Indian Export Organisations (FIEO) president Rafeeq Ahmed said the measures would have a lasting and positive impact on the country's trade.

In the wake of contraction of global demand and impending euro zone crisis , the support extended through the FTP is tremendous and will help in imparting competitiveness to exports.

The announcements have exceeded our expectations. Labour intensive sectors like textiles have been the thrust area of the FTP, Ahmed said.

Apparel Export Promotion Council chairman A Sakthivel said the measures would give a huge boost to textiles sector and the extension of Market Linked Focus Product Scheme for export to USA and EU would help increase their competitiveness and sustainability in these markets.

The FTP also gave support to e-commerce by extending exports benefits for shipment through Delhi and Mumbai and commerce minister Anand Sharma said a committee would be formed to look into various aspects of e-commerce.

We in the Express logistics industry warmly welcome the decision to make exports shipped through Express and E-Commerce from Delhi and Mumbai eligible for export benefits. We look forward to the logical next step from customs to allow commercial export shipments through courier giving the Indian exporter the choice to use the best logistic platform as per their requirements, noted Malcolm Monteiro, CEO, South Asia, DHL Express.

However, Kanoria said that for addressing the problem of widening trade deficit, export promotion measures would have to be accompanied by steps to contain the rising imports.

The Federation of Indian Micro and Small & Medium Enterprises (FISME) said that t he initiatives proposed in policy are at best tactical not strategic and the policy should include a big push for trade expositions for select sectors, inviting large number of importers from these countries in India and taking initiatives to ease non-tariff measures, to work out mutual recognition agreements for standards and to augment financial and transportation architecture.