|
|
Panel to promote exports - move in the right direction
|
|
|
|
| Top Stories |
 |
|
|
|
Bikky Khosla | 30 Nov, 2010
Even as the government set up a working group of top bankers and industrialists to advise it on raising India's export competitiveness and doubling overseas shipments, transaction costs, which account for up to eight percent of the export bill, needs to be reduced to at least half.
Our Commerce Minister, Mr Anand Sharma has rightly taken up the issue and if '50 percent of export costs could be reduced by dealing with 48 issues in the six ministries' like he said, export business can be made simpler and could provide much relief to the export community.
What comes across as a rational decision is the one taken by the government and RBI to closely monitor the export situation of the country. I strongly feel that measures like fiscal incentives for enhanced market access across the globe, diversification of export markets, 2 percent interest subvention, concessional export credit, facilitation of technological upgradation, procedural rationalization, etc. need to be looked into on an urgent basis.
Meanwhile, the new panel, formed at a high-level meeting of Board of Trade (BoT), will submit a report in three months. I think the panel will have its task cut out on finding various thrust areas to increase the country's export competitiveness as also its manufacturing capacity.
With demand still weak in the country's traditional export markets like United States and Europe, industry bodies and export promotion councils need to find key areas and issues which require the government's support or intervention to push exports. For instance, extending the interest subsidy scheme and the market linked focus product scheme will help exporters, particularly in the garment sector, to enjoy the two percent benefit.
The think-tank should also take into account the market realities which have changed considerably in the last couple of years. I find that demand is still weak in the US market and above that new economies like Bangladesh, Sri Lanka, China, Vietnam and Turkey are giving stiff competition to Indian exporters for a share of the US market. Let's just hope that the panel will take these issues into consideration when they submit their report.
|
|
|
| |
|
|
|
|
|
|
|
India's Export Competitiveness
Deepak Mehta | Wed Dec 1 09:21:36 2010
If India has to increase its export competitiveness then we have to attack the problems on:
Think of ways of Improving Infrastructure:
- encourage investors to import the latest equipment for harvesting the cotton crop.
- Vertical integration of :
- Cotton Trade, Spinning Mills.
- Weaving or knitting
- Dyeing
- Garment manufacturing& exports.
Since the infrastructure is poor each of abv operates as a profit centre, where as, there shud be one profit centre across 4 segments mentioned above.
Even if the garment exporter invests in increasing his capacity he is bogged down by poor supply of raw material, mostly fabric's which consists of 60 to 70% of FOB value.
Make export sector a priority which means any imported item that comes for value addition should be
expedited at the customs. This will apply to most plants that exist in the Duty Free Zones.
Encourage states like Bihar to attract investors to put up garment factories in the state as most labour comes from Bihar, Orissa, Chatisgarh. Set up dry docks across the length of Ganges as it will will assist reduce the pressure on JNPT & speed up the exports. Why does ports like Mumbai need 5 days cooling period ?
Build fast speed container carriers so that they can be attached to special trains like Rajdhani from Delhi to Mumbai. Currently it takes 3-4 days by road.
Panel to promote exports
Dhruv S Andharia | Wed Dec 1 05:07:59 2010
I find that demand is still weak in the US market and above that new economies like Bangladesh, Sri Lanka, China, Vietnam and Turkey are giving stiff competition to Indian exporters for a share of the US market is just due to cheap labor (factor of productions ) and SBU – Strategic Business Unit of MNC’s in those country. Dhruv S
|
|
Re: Panel to promote exports
Deepak Mehta | Wed Dec 1 09:28:00 2010
Market demand in US is not weak, it has become more price conscious. Only way to beat cheap labour is by employing methods that will increase our out put. We are not competitive because of poor infrastructure that we have inherited from the Quota era, where govt wanted to make every quota unit count.
What we do in 3 months China does it in one week & Bangladesh, Sri Lanka in one month. This is food for thought.
|
|
|
|
|
|
|
|
|
| |
| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
| Japanese
Yen |
55.05 |
53.40 |
| As on 12 Oct, 2024 |
|
|
| Daily Poll |
 |
 |
| Will the new MSME credit assessment model simplify financing? |
|
|
|
|
|
| Commented Stories |
|
|
|
|
|
|
| |
|
