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Worried over declining exports and widening current account deficit, an inter-ministerial panel formed to suggest steps to reduce transaction cost with a view to make shipments more competitive would meet on August 12.
The Task Force on Transaction Cost in Exports, headed by Director General of Foreign Trade (DGFT) Anup Pujari, would discuss several issues including steps to enhance the efficiency of air cargo complexes.
"The time taken to complete customs procedures (at these complexes) can be reduced by half through greater use of information technology," a senior commerce ministry official said.
The task force would also deliberate on compilation of a chart detailing timelines prescribed by different departments for meeting exporters and importers requests.
Besides commerce ministry, officials from railways, revenue, shipping and corporate affairs will be present in the fourth meeting of the panel, the official said.
Although the government is taking steps to boost exports like hiking interest subvention for exporters, high transactions cost was making Indian products less competitive in the international markets.
According to industry experts, the quantum of transaction cost is 7-10% of the total value of Indian exports. This amounts to a significant $15 billion.
The average cost to an exporter on account of transaction cost has been monetised at $945 per container as compared to $460 in China and $450 in Malaysia.
Non-transparent customs procedures and documentations at the ports and airports result in significant costs and delays of the consignments.
India's exports during April-May dipped by 1.41% to $72.45 billion. Trade deficit during the period stood at $50.1 billion. In 2012-13, the deficit touched an all time high of $190.1 billion.
The current account deficit (CAD) touched a historic high of 4.8% of GDP in 2012-13, mainly on account of import of gold and petroleum products and declining exports.
