Exporters have called for a government-led initiative to develop a India-based shipping line of global standing. This would reduce the shipping costs, and help sharpen Indian exports’ competitiveness in the global markets, they feel.
According to Federation of Indian Export Organisations (FIEO) India remitted $ 109 billion as transport service charge in 2020 and with rising exports it could touch $ 200 billion as exports touch $ 1 trillion by 2030.
“A 25% share by Indian shipping line can save $ 50 billion a year and will also reduce arm twisting by foreign shipping lines on medium and small businesses,” FIEO president Ashwani Kumar said at the pre-budget meeting with Finance Minister Nirmala Sitharaman and officials of the Finance Ministry. The meeting with the “trade and Services” sector also sought participation of export promotion councils for marine, leather and gems and jewellery. National Association of Software and Services Companies (Nasscom), Federation of Hotel and Restaurant Association of India (FHRAI), and regional chambers of commerce and industry also participated in the meeting.
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According to reports the government is also looking at the idea of a shipping line but what form it would take is yet to be known. Apart from costs the Indian-owned shipping line would address the issue of international vessels skipping India if they get more cargoes in Southeast Asia.
In the meeting with services and trade sector the other demands that were raised by FIEO, which is the apex body export promotion across sectors included extension of Interest Equalisation Scheme that is expiring by end of this month for another five years. They are also seeking to increase the interest subsidy to 5% from 3%. The demand was also made for increasing the budget for marketing support under the Market Access Initiative (MAI) to Rs 500 crore annually from Rs 200 crore.
The chairman of Council for Leather Exports Rajendra Jalan demanded bringing the leather and footwear sector under the Production Linked Incentive (PLI) scheme, removal of 10% duty on import of a certain variety of leathers and removal of export duty on some others which are produced locally.
At the meeting, the Chairman of Gems and Jewellery Export Promotion Council Vipul Shah sought reduction in import duty on precious metals to 4% from 15%. This will ensure that duty blockage of around Rs. 982.16 crore can be released resulting in more working capital in hand for industry. Untapped export potential for gold jewellery can be realised with more working capital (at least US$2 billion of US$ 11 billion in medium period of 2 years). GJEPC also sought reduction in import duty on Silver Bars from 10% to 4%; and reduction in import duty on Platinum Bars from 12.5% to 4%.
In FY 24 gems and jewellery exports fell 13.8% on year to $ 32.7 billion while leather exports were down 9.9% to $ 4.2 billion.
From: financialexpress
Financial News
