Goyal asks exporters not to rely on govt subsidies | The Financial Express

Goyal asks exporters not to rely on govt subsidies

Goyal was speaking at an event organised by the Services Export Promotion Council (SEPC).

Goyal asks exporters not to rely on govt subsidies
The talk of the introduction of a new scheme in place of the SEIS hasn’t progressed much either.

Commerce and industry minister Piyush Goyal on Thursday asked exporters, including those in the services sector, to not rely on government subsidies or incentives to boost exports. Rather, they should raise their competitiveness to better capture the overseas market, he added.

Lofty export goals, Goyal said, shouldn’t be impacted by smaller-than-expected subsidies and incentives. Many services exporters have been seeking greater government support to scale up exports to as much as $350 billion in FY23, against a record $254 billion in FY22, given the recession in advanced markets such as the US and the EU.

The sector has demanded the continuation of Service Exports from India Scheme (SEIS). Under this, the government used to offer exporters duty credit scrips at 5-7% of the net foreign exchange earned, depending on the nature of services. The talk of the introduction of a new scheme in place of the SEIS hasn’t progressed much either.

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Goyal was speaking at an event organised by the Services Export Promotion Council (SEPC).

“If I look at the records, when the SEIS was there, actually your exports did not grow at all, very nominal growth was there,” the minister said. “…you must have observed that gradually I am removing all subsidies from the export system…because this makes us uncompetitive, this holds us back”.

The IT sector, he said, never asks for any subsidy and they have recorded impressive growth in exports.

“How long will this mentality last that give us `2, we will be able to increase exports…We need to look at our competitive edge.”

However, the government has been seeking greater access for the services sector through free trade agreements, he said. The opening up of the domestic legal services sector will offer huge opportunities to Indian lawyers in partner countries, he added. However, there is no consensus yet on opening up the legal sector, he said.

SEPC chairman Sunil H Talati said: “It is essential for the services sector to come together and chart out a strategy that not only focuses on the now but also on the future. We need to focus on skill development in the next generation as well so that the sector strengthens at every rung.” He pushed for “internalisation of education” to increase the influx of overseas students and help push up overall services exports to $350 billion in FY23.

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