New Delhi: Expressing his disappointment over moderate growth in exports in August, the President of apex exporters body, Federation of Indian Export Organisations (FIEO), M Rafeeque Ahmed has said that the new Foreign Trade Policy (FTP) must address the issues of heavy paperwork and ease of processes for exporters.
"We want the policy to address the paperwork, ease the processes for exporters, the inter-departmental issues of revenue and commerce," Ahmed told agency on the sidelines of a launching ceremony of the first edition of the book titled "Regulatory & Facilitating Financial Framework for Exports & Imports" after its 49th Annual General Meeting in New Delhi on Monday.
He said, "Once a license is issued, you are asked to take it to the customs, get it re-verified, all these procedures are taking time and clearances. The transaction cost which is very, very high in India, we hope will be addressed through the policy so that the transaction time and the cost can be reduced. Moreover, interest subvention scheme has to be extended further."
Far reaching changes in procedures are also needed to address high cost of doing business in India. Simplification, self attestation, EDI connectivity, Risk Management System should be the main plank for reducing transaction time and cost added FIEO Chief.
While commenting on moderate growth in exports in August, Ahmed said that the five-months low growth in exports shows that global recovery is weak and non-uniform. While US and emerging economies are posting good results, Europe has again fallen into contraction.
Another reason may be less spectacular growth in petroleum exports largely on account of softening of crude prices which has helped us in managing imports and trade deficit. "Government should immediately re-introduce interest subvention on exports from April 2014 as uncertainty has impacted MSME exporters as banks have stopped passing interest subsidy to them thereby raising cost by 3 percent, he added.