New Delhi: The Confederation of Indian Industry has drawn up a 10 point agenda for the growth of India’s exports, in which it has sought the implementation of a Foreign Trade Policy as soon as possible and the expansion of export financing.
The report, titled ‘Reorienting India’s Export Effort to the Covid-19 World,’ says India should aim to achieve a 5% share in global merchandise exports and 7% in services exports by 2025, according to a statement from the IIC.
“The Foreign Trade Policy should be presented as soon as possible to establish a stable and predictable export policy regime,” he said.
In pursuit of expanding export financing, the industry body said the Interest Leveling Plan should be extended for another two years for all exporters, including the non-MSME sector. He called for quick-track GST refunds that retain working capital and said the cesses should be eliminated.
He also said that an open and enabling import environment is required to attract global companies and ensure competitive access to intermediate goods. In general, higher tariffs should be applied to finished products and lower tariffs to intermediate products, the statement added.
“The situation of the pandemic has had a negative impact on world trade. However, it also provides a great opportunity for India to better relate to the world and boost its export performance. This is an opportune time for India to strengthen its domestic manufacturing through a strong partnership between government and industry, ”said IIC Director General Chandrajit Banerjee.
“As more and more countries seek to realign their business strategies and diversify their import sources after the Covid-19 outbreak, India must take advantage of the current situation to emerge as an alternative destination for sourcing profitable and quality products,” added.
He believed that a key point of India’s export strategy should be to strengthen its participation in global value chains.
According to the report, the capabilities of the Export-Import Bank and the Export Credit Guarantee Corporation must be strengthened to increase resources and reduce risks.
Trade facilitation can be strengthened through digital tools for faster movement of goods at the border. He recommended reducing the physical examination of goods, expanding the “Authorized Economic Operator” program, and guaranteeing the “Direct delivery in port” system.
He also suggested that the Commercial Infrastructure for Export Scheme (TIES) should be expanded and included in the National Infrastructure Pipeline. In the medium term, it is essential to develop a comprehensive strategy for hinterland connectivity, the IIC said among other suggestions.
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