put forward by FIEO President, Mr Ganesh kumar Gupta during the 3rd meeting of
the ‘Council for Trade Development and Promotion at New Delhi on January 8,
2018, says a release.
Indian exporters are facing tough competition globally, particularly MSMEs who
have limited resources. States have indeed an important role to play in India’s
exports as all factors of production lies with the State. Hence, I would like
to flag a couple of points where support of State would immensely benefit the
exporting segment in terms of enhancing the ease of doing business and reducing
transaction cost as well as time.
1. Exporters are now required to pay taxes and subsequently claim refund under
GST. The States, in this regard, have a larger role to play as they shall be
handling large number of refund applications manually, till online mechanism
starts functioning. Hence, awareness amongst the concerned officers at ground
is extremely important for smooth processing of such refund applications.
Moreover, a refund mechanism, how so ever efficient, affect the liquidity and
competitiveness of exports and thus we request you all to provide exemption
from GST on inputs required for export production as is being provided by many
countries where GST or VAT is in operation.
2. Secondly, electricity duty being levied by some States is presently not
refundable and thus has to be absorbed in the export price. This has bearing on
the export competitiveness to some extent. Hence, export industry would require
support from State Government to push for electricity duty under the GST regime.
We expect that Petroleum goods will also be brought under GST in next fiscal.
3. Exports are price sensitive and most of exports are being done on a razor
thin margin. However, land locked exporters have to bear huge transportation
charges which is being absorbed in export pricing. They thus lose out to their
competitors. Hence, States may consider providing transport/freight subsidy
enabling exporters from hinterland to compete with their counterparts in
coastal states as well as other countries.
4. Sir, lack of facilities like testing, designing etc. at local level for a
particular export product does add to transaction cost and time. Here, I would
submit that States may identify projects after examining the infrastructure
needs of particular exporting centers and accordingly provide support under
5. Last mile connectivity is need of the hour for smooth movement of export
cargo. Hence, States may review its connectivity to ports, dry ports and LCS
and identify sectors which require attention.
6. Services and agri sector could be the major growth drivers for export
promotion as well as employment. Conducive polices, hard infrastructure as well
as skill are crucial areas where the Government can focus upon while drawing
7. There is a need to enhance the visibility of Indian products abroad. States,
in line with the marketing support under Central Government schemes, may
introduce similar schemes for sectors having export potential.
8. Each State must have empowered Export Facilitation Committee (EFC) chaired
by the State Commerce/ Industry Minister. This committee should include
Industry, Revenue, Energy and Labour Secretaries and few l exporters. This
committee must meet once a month to sort out all the issues affecting export and
industrial growth. At present, some States have Udyog Mitra, Grievance
Committee, etc but all these committees do not have any teeth and are not
effective. EFC should have legislative backing so that its decisions are
followed in letter and spirit.
9. Lastly, an actionable and dynamic export strategy for States is important
and FIEO assures full support to States in its endeavour of developing suitable
strategies. Further, export officers at district level could be the key
enablers in process of framing strategies as they have direct interface with
local industry. There is need to sensitise State offices in various facets of
I am sure the initiative taken under the Chairpersonship of Hon’ble Commerce
& Industry Minister would go a long way in brining the desired focus
towards export sector and taking Indian exports to a higher growth trajectory.