New Delhi: The government on Wednesday said it will focus on six major areas, including SEZs (special economic zones), export credit and MSMEs (micro, small and medium enterprises), to boost exports which have been in the negative since December 2014.
"Government is committed. The Prime Minister has been very keen that we engage with stakeholders where we can do small or big things to facilitate and help the exporters," Commerce and Industry Minister Nirmala Sitharaman said while addressing the first meeting of the reconstituted 70-member Board of Trade.
The specific focus areas identified for action by the Commerce Ministry include improving ease of doing business in SEZs; according priority sector status to export credit; involving embassies to promote trade, and incentives for organic food sector.
Other focus areas would be addressing issues of EXIM Bank and Export Credit Guarantee Corporation (ECGC) and special attention to MSMEs.
"I should look forward to periodically engage and getting your inputs with the six different activities that I have suggested. We will be able to specifically move forward...It's going to be a vibrant Commerce Ministry with all your inputs taken up seriously," she said, adding, "We are going to be able to handhold and help the sectors which desperately need help."
The board meeting was attended by senior officials from various ministries, industry chambers, representatives of export promotion councils, corporates including ICICI Bank Ltd MD and CEO Chanda Kochhar, Biocon MD Kiran Majumdar-Shaw and Dr Reddy's MD Satish Reddy.
During the meeting, industry raised the issue of minimum alternate tax on SEZs; problems in getting credit for MSMEs, impacts of free trade pacts, inverted duty structure, matters related to US Food and Drug Administration (FDA) and extending line of credit to boost exports.
Mr Sitharaman said that the first meeting of the newly-constituted Board of Trade was a constructive engagement and now "we shall work on compiling all the inputs.
"We have committed to improve the potential of SEZs wherein a lot of land pool is yet to be utilised. They contribute significantly to exports. In order to improve their capacity and make them more attractive for more people to come and set up their businesses in the SEZ..."
"Without the DDT and MAT issues resolved, SEZs are still an attractive composition. Commerce Secretary will hold a meeting of SEZs with the officials of DEA, CBEC and industry," she said.
She also said that the ministry will hold a meeting with the ambassadors, high commissioners with their commercial and economic wings by involving the Ministry of External Affairs. Further talking about Exim Bank and ECGC, she said they have raised specific issues.
"In order to have these two institutions not unfairly restricted due to certain practices which are not warranted and which are not borne by their compatriots in other countries."
"We shall hold from the Commerce Ministry a meeting with the department of economic affairs and regulatory bodies like IRDA to make sure that if there are any functional ease which has to be brought into the activities, we should facilitate the process," Ms Sitharaman said.
On export credit, the Commerce Minister said the suggestion that according export credit as priority sector holds great importance for exports and "we will take it up with the Finance Ministry and see best how it can be handled".
"I will definitely talk to the Finance Minister," she said.
She said that the board meeting happened at a time when "we are facing severe challenges. It is not easy for exporters."
She also said that the ministry discussed ways to resolve issues of bulk drugs industry, seafood industry, bio-technology and electronics.
On the bulk drug issue, she said the ministry has discussed the matter with Fertilizer and Chemical Minister and the Environment Minister.
She further said that organic produces like tea, fruits, vegetables and herbs are fetching good prices in the world markets and "we shall be ensuring that agri and horticulture department, commerce ministry and MSME will all be brought together to make sure that this set of exporters find markets".
"If there are any policy initiatives that we have to take up, we shall take up," she said.
During the three-hour long meeting, exporters body FIEO suggested that investment-linked tax benefits particularly to the MSMEs should be provided to boost production and exports.
CII president Naushad Forbes said that India's exports are highly dependent on primary goods and labour intensive low value added manufactured goods and its share in high value added is very less.
He also called for diversification of services exports and reforming the standards regime in India.
Expressing concern over falling exports, Gem Jewellery Export Promotion Council (GJEPC) chairman Praveenshankar Pandya in the meeting said that the country's overall gems and jewellery exports are likely to drop by 16 per cent in fiscal year 2015-16 for the first time in last 40 years.
Some top industrialists who did not make it to the meeting including Apollo Tyres CMD Onkar Kanwar, Hero MotoCorp MD Pawan Munjal, HCL Technologies chairman Shiv Nadar, Mahindra Group MD Anand Mahindra, ITC chairman Y C Deveshwar and Ashok Leyland MD R Seshasayee.
"Government is committed. The Prime Minister has been very keen that we engage with stakeholders where we can do small or big things to facilitate and help the exporters," Commerce and Industry Minister Nirmala Sitharaman said while addressing the first meeting of the reconstituted 70-member Board of Trade.
The specific focus areas identified for action by the Commerce Ministry include improving ease of doing business in SEZs; according priority sector status to export credit; involving embassies to promote trade, and incentives for organic food sector.
Other focus areas would be addressing issues of EXIM Bank and Export Credit Guarantee Corporation (ECGC) and special attention to MSMEs.
"I should look forward to periodically engage and getting your inputs with the six different activities that I have suggested. We will be able to specifically move forward...It's going to be a vibrant Commerce Ministry with all your inputs taken up seriously," she said, adding, "We are going to be able to handhold and help the sectors which desperately need help."
The board meeting was attended by senior officials from various ministries, industry chambers, representatives of export promotion councils, corporates including ICICI Bank Ltd MD and CEO Chanda Kochhar, Biocon MD Kiran Majumdar-Shaw and Dr Reddy's MD Satish Reddy.
During the meeting, industry raised the issue of minimum alternate tax on SEZs; problems in getting credit for MSMEs, impacts of free trade pacts, inverted duty structure, matters related to US Food and Drug Administration (FDA) and extending line of credit to boost exports.
Mr Sitharaman said that the first meeting of the newly-constituted Board of Trade was a constructive engagement and now "we shall work on compiling all the inputs.
"We have committed to improve the potential of SEZs wherein a lot of land pool is yet to be utilised. They contribute significantly to exports. In order to improve their capacity and make them more attractive for more people to come and set up their businesses in the SEZ..."
"Without the DDT and MAT issues resolved, SEZs are still an attractive composition. Commerce Secretary will hold a meeting of SEZs with the officials of DEA, CBEC and industry," she said.
She also said that the ministry will hold a meeting with the ambassadors, high commissioners with their commercial and economic wings by involving the Ministry of External Affairs. Further talking about Exim Bank and ECGC, she said they have raised specific issues.
"In order to have these two institutions not unfairly restricted due to certain practices which are not warranted and which are not borne by their compatriots in other countries."
"We shall hold from the Commerce Ministry a meeting with the department of economic affairs and regulatory bodies like IRDA to make sure that if there are any functional ease which has to be brought into the activities, we should facilitate the process," Ms Sitharaman said.
On export credit, the Commerce Minister said the suggestion that according export credit as priority sector holds great importance for exports and "we will take it up with the Finance Ministry and see best how it can be handled".
"I will definitely talk to the Finance Minister," she said.
She said that the board meeting happened at a time when "we are facing severe challenges. It is not easy for exporters."
She also said that the ministry discussed ways to resolve issues of bulk drugs industry, seafood industry, bio-technology and electronics.
On the bulk drug issue, she said the ministry has discussed the matter with Fertilizer and Chemical Minister and the Environment Minister.
She further said that organic produces like tea, fruits, vegetables and herbs are fetching good prices in the world markets and "we shall be ensuring that agri and horticulture department, commerce ministry and MSME will all be brought together to make sure that this set of exporters find markets".
"If there are any policy initiatives that we have to take up, we shall take up," she said.
During the three-hour long meeting, exporters body FIEO suggested that investment-linked tax benefits particularly to the MSMEs should be provided to boost production and exports.
CII president Naushad Forbes said that India's exports are highly dependent on primary goods and labour intensive low value added manufactured goods and its share in high value added is very less.
He also called for diversification of services exports and reforming the standards regime in India.
Expressing concern over falling exports, Gem Jewellery Export Promotion Council (GJEPC) chairman Praveenshankar Pandya in the meeting said that the country's overall gems and jewellery exports are likely to drop by 16 per cent in fiscal year 2015-16 for the first time in last 40 years.
Some top industrialists who did not make it to the meeting including Apollo Tyres CMD Onkar Kanwar, Hero MotoCorp MD Pawan Munjal, HCL Technologies chairman Shiv Nadar, Mahindra Group MD Anand Mahindra, ITC chairman Y C Deveshwar and Ashok Leyland MD R Seshasayee.
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