Exporters seek sector development fund

New Delhi: Exporters’ body Federation of Indian Export Organisations (FIEO) on Saturday met Finance Minister Nirmala Sitharaman and pitched for a host of measures to boost outbound shipments.

These include the setting up of a development fund; bringing in a double tax deduction scheme; extending tax deductions on product development; providing fiscal support to attract private investment in the shipping industry in order to keep freight rates under check; measures for export promotion amid rising protectionist tendencies; rolling out the proposed Export Credit Insurance Scheme (ECIS); and allocating larger funds to provide aid trade finance.

“Rising NPA s have caused decline in export credit by banks to exporters resulting in liquidity problems. To provide necessary comfort to bankers, the government may roll out the NIRVIK Scheme (also called ECIS) which was announced in September 2019 but remains non-operational so far,” said FIEO President Sharad Kumar Saraf.

Under the proposed scheme, interest rates will likely fall to 3.15 per cent for export credit in dollar terms and 7.35 per cent in rupee, according to the proposal moved to the Cabinet.

“If India’s GDP has to grow at 8 per cent, exports should grow at 15 per cent. The Department of Commerce should be given enough budget allocation to support exports, including agri exports,” the association said.