Exporters likely to get some relief
Prime Minister Manmohan Singh has decided to set up a task force on exports to cut transaction costs and make Indian exporters more competitive in global markets.
By TNN |
DELHI: Prime Minister Manmohan Singh has decided to set up a task force on exports to cut transaction costs and make Indian exporters more competitive in global markets. The task force will consist of the FM, Union commerce & industry minister Kamal Nath and Planning Commission deputy chairperson Montek Singh Ahluwalia. One of the task force���s primary objectives is to bring about a consensus between the finance ministry and the commerce department on export incentives.
The move follows repeated complaints from exporters that high transaction costs are hindering export growth. The finance ministry doesn���t implement all export incentives as originally announced in the Export-Import Policy as revenue considerations take precedence, exporters have been arguing. For example, they have pointed out to the failure to bring out a replacement for the Duty Entitlement Pass Book (DEPB) Scheme. The finance ministry has been giving the scheme quarterly extensions, pending a replacement.
It is understood that the task force, expected to be set up shortly, will be a forum to resolving all export-related issues, on a regular basis. The Federation of Indian Export Organisations (FIEO) has been demanding the setting up of such a body and the PM has accepted the demand. It is understood that exporters will take up all outstanding issues with the task force. ���The PM has agreed that a task force be set up for greater co-ordination on issues concerning exporters. The task force will meet at least once in every six months,��� FIEO president OP Garg said. Representatives of a number of prominent export-promotion organisations were present at the meeting to present their case to Mr Singh.
Mr Chidambaram, Kamal Nath, minister of state in the PMO��� Prithviraj Chavan ��� were those present at the meeting along with senior officials from the finance ministry. Planning Commission member Anwarul Hoda was also present.
Exporters had earlier discussed high transaction costs at the recent Board of Trade meeting in Mumbai and followed this up with a round of talks with Kamal Nath. Their case is that exports can grow faster if the government cuts transaction costs. They also asked that FBT be withdrawn and asked an early decision from service tax. They also want ���sleepless ports��� ���like those in Shanghai��� in Mumbai.
The move follows repeated complaints from exporters that high transaction costs are hindering export growth. The finance ministry doesn���t implement all export incentives as originally announced in the Export-Import Policy as revenue considerations take precedence, exporters have been arguing. For example, they have pointed out to the failure to bring out a replacement for the Duty Entitlement Pass Book (DEPB) Scheme. The finance ministry has been giving the scheme quarterly extensions, pending a replacement.
It is understood that the task force, expected to be set up shortly, will be a forum to resolving all export-related issues, on a regular basis. The Federation of Indian Export Organisations (FIEO) has been demanding the setting up of such a body and the PM has accepted the demand. It is understood that exporters will take up all outstanding issues with the task force. ���The PM has agreed that a task force be set up for greater co-ordination on issues concerning exporters. The task force will meet at least once in every six months,��� FIEO president OP Garg said. Representatives of a number of prominent export-promotion organisations were present at the meeting to present their case to Mr Singh.
Mr Chidambaram, Kamal Nath, minister of state in the PMO��� Prithviraj Chavan ��� were those present at the meeting along with senior officials from the finance ministry. Planning Commission member Anwarul Hoda was also present.
Exporters had earlier discussed high transaction costs at the recent Board of Trade meeting in Mumbai and followed this up with a round of talks with Kamal Nath. Their case is that exports can grow faster if the government cuts transaction costs. They also asked that FBT be withdrawn and asked an early decision from service tax. They also want ���sleepless ports��� ���like those in Shanghai��� in Mumbai.
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