The Confederation of Indian Industry (CII) today submitted it’s nine-point agenda on reversing the exports downtrend to Mr. Kamal Nath, Minister of Commerce & Industry, Government of India and Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Government of India.
In a meeting of leading Indian exporters with Mr. Nath, Dr. Ahluwalia and senior government officials like Cabinet Secretary Mr. K M Chandrasekhar, Commerce Secretary Mr. G K Pillai, Revenue Secretary Mr. P V Bhide, DIPP Secretary Mr. Ajay Shankar, among others; Mr. Sanjay Budhia, Chairman, CII Trade Committee called for a macro economic stimulus package for exporters.
The nine point agenda as suggested by CII includes; first, setting up of a committee under Chairmanship of the Prime Minister to examine the losses faced by Indian exporters in currency derivatives. Elucidating this recommendation, Mr. Budhia said, “Exporters have lost over 2,000 crore rupees in these currency derivatives, it is important that we resolve this issue amicably on a no profit – no loss basis”.
Second, withdrawal of retrospective amendment of Section 80 HHC. The retrospective amendment of section 80 HHC has made exporters with a turnover of more than Rs 10 Crore, liable to pay income tax retrospectively from April 1998. “CII feels such retrospective amendment of section 80 HHC does not hold water”, Mr. Budhia, said.
Third, enhancement of Duty Entitlement Pass Book (DEPB) rates by 5% across all sectors; fourth, additional 2% interest subvention and removal of 7% ceiling on export credit; fifth, subsidisation of Export Credit Guarantee Corporation (ECGC) cover charges; sixth, exemption of service tax on certain engineering goods; seventh, zero duty on EPCG; eighth, elimination of compensation fees under advance authorisation scheme; ninth, additional benefits under Focus Market Scheme.
“Exports have been an important component of India’s GDP growth in last few years, strengthening of export sector through government incentives would help bring the economy back on track”, said Mr. Budhia.