Reducing cost, time at ports a must to help increase export
NEW DELHII, June 9: The government should take six concrete steps such as reducing cost and time of port clearance for goods and enhancing availability of credit with a view to boost exports, TPCI said Sunday.
Suggesting the six point agenda to push exports, Trade Promotion Council of India (TPCI) said identifying new product basket which can easily find world market would have inherent advantage over India's global competitors.
Besides, it asked for promotion of Indian products to new and emerging markets creating a national portal for global trade inquires and providing incentives to exporters based on their performances.
"Indian port charges should be reduced as it make exports less competitive compared to rest of the world. India has one of the highest port charges, number of days for port clearance and delivery as compared to our major competitors," TPCI Chairman Mohit Singla said in a statement.
The logistic cost per kilometer of road transport for India is high as compared to China, Bangladesh, Vietnam and Sri Lanka, he said.
"The custom and port clearance takes six days for India, 1.5 days for China, six days for Vietnam and three days for Sri Lanka," he said.
Singla said availability of credit at competitive rates would significantly increase competitiveness.
Calling for external outreach and promotion of Indian products to new and emerging markets, he said, India could utilise 80 trade promotion offices for promotion of various products and brands.
He added that in terms of products, processed food alone has huge scope after value addition and can fetch forex exchange.
On phasing out subsidies for exports, he said, the government need a cautious view to deal with this matter as the buyers also negotiate and demands some part of the subsidy.
Since 2011-12, India's exports have been hovering at around USD 300 billion. During 2018-19, the shipments aggregated at USD 331 billion.
Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange. -PTI