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Finance Minister to form an Export Development Fund for SME exporters : FIEO

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NEW DELHI : Federation of Indian Export Organisations (FIEO) has urged the Finance Minister Smt. Nirmala Sitharaman to form an Export Development Fund for marketing purpose with a corpus of minimum 0.5% of preceding year’s exports to support SME exporters.

FIEO, President, Dr A Sakthivel during the pre-budget meeting said the support given under Market Development Assistance (MDA) Scheme with total allocation of less than Rs 200 crore, for promoting exports to USD 460-470 bllion is just a drop in the ocean, said a press release.

“Therefore, for aggressive marketing, there is a need of creation of an Export Development Fund with a corpus of minimum 0.5% of preceding year’s exports,” he added.

Suggesting initiatives to support the export sector, he said the Government may provide a 200% tax deduction on the expenditure made by the exporters for overseas marketing.

“Such a move will encourage and help the showcasing of Indian products overseas,” said the chief.

Thanking the government for facilitating container manufacturing in the country to become Atma Nirbhar, FIEO has asked for a similar focus for developing an Indian Shipping line of global repute.

Expecting the credit rate for most of the MSMEs to go further in the next few months or so, it has highlighted an urgent need to restore the interest equalization benefit of 5% to manufacturer MSMEs and 3% to all 410 tariff lines as existed prior to October 2021, as cost of credit has crossed the pre covid level and is adversely impacting exporters.

“GST Refund to Foreign Tourists at the airport, as envisaged under IGST Act, has not yet been operationalized. Such an initiative will not only give fillip to tourism but will also help in exports of handicrafts, non-precious jewellery, carpets, textiles, khadi, and leather. Ayush and herbal products, beauty products etc,” said Sakthivel.

Further FIEO urged the Government to provide fiscal support to units who provide additional employment in the export sector.

According to the federation such a Scheme will also help the workers to move from informal employment to formal employment, which is a priority of the Government.

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