Monday, March 31, 2008

India’s exports to touch US$ 200 billion by 2009

by Jo Black

India’s total exports of merchandise goods will touch US$ 200 billion in 2009, which means exports will clock an over 20 percent growth for all the five years of the policy (2004-09). This has been indicated in a CEO survey conducted by the Confederation of Indian Industry (CII) on the Foreign Trade Policy.

CII members are of the view that India will become a major player in the global market, if the government ensures stability with no mid-term changes to the policy. This will enable long-term planning for exports, the CEOs said.

CEOs were of the view that, if different export promotion schemes were to be brought down to a few schemes this year, then schemes like Duty Entitlement Pass Book (DEPB), Export Promotion Capital Goods (EPCG), Duty Free Import Authorisation (DFIA) should continue.

CEOs emphasised in the survey that the annual supplement should focus on the following:

Government should continue simplifying export and import procedures for small and medium enterprises, which contributes a large portion of total exports from the country.

Enhance the powers of Regional and Zonal offices of the DGFT to ensure quick local approvals to exporters, as in the current procedure the cases are sent to the Head Office of DGFT at Udyog Bahawan, New Delhi for approval.

Electronic Data Interchange (EDI) to be implemented across all ports
Improving infrastructure, high transportation costs, poor road linkages with ports and setting a target of a maximum of 10 hours turnaround time at ports for all goods by 2010.

There is a need for a mechanism to control sudden increase in sea freight. There is a 61 percent increase in sea freight costs in the last one year making exports un-competitive.

New Export Promotion Schemes
The survey suggests that exporters are looking for new export promotion schemes from this annual supplement that will promote export of goods and services and completely exclude duties and taxes (state and central). The new scheme should also help exporters in getting the raw material at a cheaper rate so that the Indian products can become competitive at the international markets.

Need to focus on Knowledge arbitrage
According to the survey India should focus on an expanded trade basket and value added exports by moving ahead in the value chain and start focusing on manufacturing high-end products to compete in the global market. There is a need for India to start concentrating on the knowledge arbitrage instead of labour arbitrage - new technology, design, branding etc. for enhancing our products and to get wider acceptability in the international market.

Competitors in global market
Competition in global markets, according to the survey, for Indian products are from China, Romania, Brazil, Sweden, France, Vietnam Bangladesh and ASEAN countries. The products, which face intense competition, include; capital goods, high-tech products, healthcare products, medical equipments, automobile, information technology, the survey revealed.

Technology Fund for Small and Medium Enterprises (SMEs)
CEOs were of the view the annual supplement should introduce an SME Export Technology Fund, that will provide a one-time funding to export oriented units at a nominal interest rate.

The survey also pointes out that technology will be a major component for exports to become more value added in the coming years. Most small and medium sector enterprises find it difficult to identify and buy technology for improving productivity and quality as well add value to products.

Focus Market and Products
There is a need to expand basket for Focus Market and Focus Product scheme to the countries that are fast growing markets for Indian produce and the benefits of these schemes can be utilised by all sectors across. The new markets that the Indian companies are looking at are: Eastern Europe, Russia, Central and South America, Pakistan, Middle East and African countries.

Problem in obtaining visas
An important barrier identified by exporters for penetrating in global markets is the difficulty in obtaining visas for traveling for business development. Indian exporters require greater openings for business-visas, the survey suggested.

 

 

 

Stories related to: India’s exports to touch US$ 200 billion by 2009

 

 

Visited 1123 times, 1 so far today