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Govt to take steps to cut exporters' transaction cost

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 1:04 AM IST

The government today said it has completed a study on measures to substantially reduce the transaction cost incurred by exporters to make them globally competitive.

"We have come to the end of the study," Minister of State for Commerce and Industry Jyotiraditya Scindia said here.

The study covered six sectors, including textiles, gems and jewellery, leather and garments, he said at a Federation of Indian Micro and Small and Medium Enterprises function.

Wide consultations were held with ministries like finance, railways, shipping and civil aviation to eliminate the unnecessary procedures.

It is estimated that transaction cost accounts for 6-7 per cent of the country's total exports worth $176 billion in 2009-10.

Avoiding or cutting these transactions would mean saving of $8-10 billion.

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Currently, there are a number of steps involved in exporting goods such as delivery of goods to the seaport or airport, clearance from the customs or port authority, handling over the consignment to the shipping or airlines and taking necessary authorisation from the bank.

Also, multiple filing of papers by exporters adds to additional costs.

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First Published: Jul 22 2010 | 9:29 PM IST

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