Perfect Sourcing - - Inside -

Ex­porters have their ex­pec­ta­tions pinned on the Union Bud­get for more in­cen­tives to sus­tain growth mo­men­tum, a way out of the work­ing cap­i­tal woes stem­ming from the new GST regime and an im­prove­ment in in­fras­truc­tural fa­cil­i­ties. The Fi­nance Min­istry, how­ever, will need to weigh a lot of fac­tors such as main­tain­ing fis­cal pru­dence, con­form­ing to mul­ti­lat­eral obli­ga­tions of curb­ing ex­port sub­si­dies and nudg­ing State Gov­ern­ments to par­tic­i­pate in in­fra­struc­ture de­vel­op­ment for ex­ports, while com­ing up with a fresh pack­age for ex­porters. Is it, how­ever, im­por­tant to un­der­stand what ex­porters ex­pect from the up­com­ing bud­get?

Ihave a big wish list from the Gov­ern­ment. Firstly, the duty free im­ports of fab­rics ex­ist­ing ear­lier should be con­tin­ued. In­ten­sive aware­ness pro­grams must be con­ducted by Cus­toms in clus­ters Jaipur, Lud­hi­ana, Mum­bai, Delhi and other places to cre­ate aware­ness about has­sle free cus­toms ex­pe­ri­ence. An­other area of con­cern is that while on the one hand we are pay­ing 18 per­cent freight on ex­ports, we have to pay an ad­di­tional 18 per­cent GST on the other. We are ob­vi­ously af­fected by this and it should be rec­ti­fied. Over­all, pre­vail­ing draw­back rates should def­i­nitely be re­vised as we are los­ing busi­ness ev­ery day. Our com­pet­i­tive­ness is af­fected and we are al­ready see­ing poor re­sults on our bal­ance sheets. HKL Magu, Chair­man, aepc

The sit­u­a­tion of our in­dus­try is no longer hid­den from ev­ery­one and what is re­quired is strong sup­port. Firstly, the Gov­ern­ment has to re­store draw­back rates to ear­lier lev­els, as we are los­ing busi­ness ev­ery day. Presently, in­vest­ments and expenditure up to a com­bined limit of Rs 1 lakh get ex­emp­tions un­der Sec­tions 80C, 80CC and 80CCC of the In­come-tax Act. This should be en­hanced to Rs 10 lakh. Apart from this, the rates of in­ter­est on loans vary be­tween 9 to 12 per­cent; the in­ter­est rate should be re­duced so that an ex­porter can in­vest more. The most im­por­tant ar­eas where we need Gov­ern­ment’s in­ter­ven­tion is in duty draw­back rates and ROSL, as the new rates have dis­turbed the busi­ness.

Narinder Chugh, Mil­lion ex­porter, Lud­hi­ana

The Gov­ern­ment has given us three months from 1st Jul to 30th Sep to deal at the ex­ist­ing duty draw­back rates and our main con­cern is that it should be ex­tended or re­tained as ear­lier for the sake of sur­vival. Ev­ery gar­ment ex­porter was work­ing on a net profit of 4 to 5 per­cent and we are now los­ing around 1 to 2 per­cent on ev­ery or­der. No com­pany is so com­pe­tent that it will keep run­ning while in­cur­ring losses. We are told that a spe­cial com­mit­tee is be­ing formed to take care of the draw­back rates of the gar­ment and many other sec­tors and if they sin­cerely lis­ten to ad­vice and sug­ges­tions, we hope that they will agree to pay draw­back as ear­lier. While ear­lier we were mak­ing a prod­uct for USD 5$, the same piece can no longer be made even at USD 5.50; the buyer is not ready to pay a higher price and thus the gov­ern­ment should come for­ward to our res­cue. Tra­di­tional items like ma­chine parts, gems, jew­ellery, gar­ments, tex­tiles and many more are all suf­fer­ing and they should get due re­lax­ation. The in­dus­try is the big­gest em­ploy­ment gen­er­a­tor; since peo­ple have al­ready started clos­ing down, jobs are ad­versely af­fected. We ex­pect the Gov­ern­ment to take ac­tion on all these as­pects as quickly as it can. anil Varma, pres­i­dent, Delhi ex­porters as­so­ci­a­tion, Delhi

Iam told that the Cen­tral gov­ern­ment’s bud­getary out­lay for im­prov­ing ex­port in­fra­struc­ture is only Rs. 500 crore. Since in­fra­struc­ture is cru­cial for ex­ports, bud­get al­lo­ca­tion on in­fra­struc­ture has to be en­hanced con­sid­er­ably. Higher as­sis­tance should be pro­vided to lo­gis­tics also. Kar­nataka had re­ceived in­vest­ment in­ten­tions of Rs. 1.49 lakh crore till Oc­to­ber 2017, which is 43 per­cent of the in­vest­ment in­ten­tions of the coun­try. The State has be­come the top desti­na­tion for FDI in the coun­try and has done well in ex­ports, con­tribut­ing about 40 per­cent in elec­tron­ics and soft­ware ser­vices. rv Desh­pande, Kar­nataka Min­is­ter for Large, Medium in­dus­tries and in­fra­struc­ture De­vel­op­ment

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.