Mr. M. Rafeeque Ahmed, President, FIEO expressed his disappointment over non-extension of Interest Subvention Scheme for exports particularly when there has already been over 50% increase in interest cost for exports. Mr Ahmed added that he was expecting announcement of some firm date for GST as well which could have given some hope to the export sector for Zero rebating so as to impart competitiveness to export.
However, FIEO President said that the focus on infrastructure will benefit manufacturing as well as exports. Target of covering a length of 8,800 kilometre under NHDP next year, full exemption from basic duty provided to certain fuels for power generation, tax free infra bonds and reduction of tax on ECBs in power, Roads, Airlines will benefit export sector. The setting of two new mega cluster one to cover Prakasam and Guntur districts in Andhra Pradesh and another for Godda and neighbouring districts in Jharkhand and strengthening of existing ones will boost exports of handloom textiles and leather. The concession give to cold chain facilities will help in backward integration and will ensure adequate surplus of food products for exports. The reduction of customs duty on textile machinery like shuttleless loom will help the sector to withstand competition from Bangladesh, Sri Lanka, Vietnam, Turkey.
The clarity on export of services would reduce the litigation and Mr Ahmed suggested that services exclusively used for exports should form part of the negative list of services to be notified shortly.
