Exporters’ body demands clear cut policy for MSME sector, promote exports

Himanshu Vatsa | The Dollar Business The government should come up with a “clear cut” policy for the micro, small and medium enterprises (MSME) sector, to encourage small-scale industries to boost exports, the Delhi Exporters Association said. The exporters’ body has already submitted its demand to the government in this regards. "The government should come out with a clear cut policy to encourage exports from India, including exports on manufacturing basis, especially for MSME products and those from tiny/cottage industry sector," the association said in a press statement. “Actually, the government is too slow when it comes to action and implementation. In 2002, we were promised a separate export corridor by the previous UPA government. But nothing has been done on the ground. The present government has also failed to take any measures to encourage exports,” said Tilak Raj Manaktala, President of the Delhi Exporters Association (DEA). Talking about problems faced by the exporters, Manaktala said that high cost of transaction, the lack of infrastructure, higher rate of bank loans and delay in duty drawbacks are hampering India’s exports. “As per norms, duties should be refunded within five days. But the payments often get delayed by months. Besides, traders are given bank loans at an interest rate as high as 16% and our liquidity gets blocked,” Manaktala told The Dollar Business. The MSME sector, despite being a major employment provider and contributor of India’s exports, has been neglected by the government, the association said. Manaktala also said that foreign buyers are not confident about India's ability to supply quality products on time. “A lot of shortcomings should be removed to achieve the target of US$ 900 billion exports by 2019-2020,” he added. Manaktala also expressed concern over the procedural hurdles faced by exporters. While booking a transport contract with the Indian Railways, an exporter has to approach the Container Cooperation of India, a government-owned company which has the monopoly. “The company allows us to use containers at a premium of 50%, adding unnecessary burden on exporters. Why can’t railways directly deal with us?” he said. The latest government data said that India's exports reduced to US$22 billion in April, about 14% as compared to $25 billion recorded during the same month a year ago.    

May 29, 2015 | 9:22 pm IST.