NEW DELHI, Dec 18: Exporters have sought support measures like waiver of electricity duty and easier availability of credit in the forthcoming Union Budget to boost the country’s outbound shipments.
According to exporters, the finance ministry needs to provide reasonable funds to the Department of Commerce not only for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme reimbursement but also for export promotion and other initiatives.
Under the RoDTEP, various central and state duties, taxes and levies imposed on input products, among others, are refunded.
They have also suggested certain tweaks in customs duties and availability of credit at affordable rates to boost exports and create jobs.
Mumbai-based exporter and chairman of The Bombay Textile Research Association S K Saraf said exports are key drivers to promote the country’s economic growth and the Budget should address issues being faced by the sector.
“The Budget should provide a mechanism for waiver of electricity duty for the units that are exporting more than 50 per cent of their production. Manufacturer exporters who are exporting more than 50 per cent of their production should be granted a script equivalent to 2 per cent of their exports to compensate for these handicaps that exporters suffer. This compensation cannot be seen as an incentive,” Saraf said.
Exports provide high quality employment, and promote induction of technology, quality consciousness and infrastructure development, he said.
“My dream Budget would be the one that makes exports as an engine of growth of the economy,” he added.
The Budget for 2023-24 is scheduled to be presented on February 1.
“At present our exports of goods and services are about 21.5 per cent of GDP in 2021-22. It is woefully small compared to the average contribution of exports to GDP of about 30 per cent or more in most developing countries in Asia. Export supports many sectors like banking, shipping, insurance, and tourism,” Saraf noted.
Ludhiana-based Hand Tools Association President S C Ralhan said the finance ministry should provide sufficient funds to set up sector-specific clusters or parks with modern infrastructure.
“This will help increase the competitiveness of manufacturers. Funds should also be granted to organise exhibitions and fairs in different parts of the world like Africa which hold huge export potential,” Ralhan said. (PTI)
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