Technological upgradation and diversifying into new markets are the two things exporters need to focus on, given the challenging economic climate in the traditional export markets of developed Western countries. This was the key message for exporters at a round table session on exports organised by the Confederation of Indian Industry here on Tuesday.
Pointing to the Rs 5 lakh crore trade deficit (i,e excess of imports over exports) in 2009-10, PN Rao, commissioner, customs & central excise, said it was preferable to have exports more than imports.
“Surplus foreign exchange reserves will not cushion the deficit situation for long,” he said, and advised exporters to explore new markets and go for technological upgradation.
He listed government measures including trade agreements with South Korea and other countries to expand the areas of trade, schemes for technological upgradation, and anti-dumping duty imposed on Chinese telecom equipment.
“In the telecom sector, equipment is coming from China and dumping is going on because there are very few Indian players. The government imposed anti-dumping duty of 50 per cent initially, but now proposes to raise it to 260-270 percent. This shows how seriously they want to export to India. A lot of subsidisation is going on in those countries,” he said delivering the keynote address.
Rao also advocated a state-level policy for export promotion for Andhra Pradesh, similar to the ones in Karnataka and Tamil Nadu. “Things are looking better for Hyderabad's software exports this quarter. Its contribution to customs, excise and service taxes saw a growth of 28 per cent, 56 per cent and 19 per cent respectively, compared with last year,” he said, adding it was high time the state had an export policy of its own.
Mahesh K Desai, convener of CII-AP Exim panel, said the industry body was coming up with a draft policy on export promotion for the state. "We formed a peer group to draft the policy covering IT/ITeS, pharmaceuticals, research & development and agriculture," he said, pointing out that though the state was a leader in these sectors it still did not have such a policy document.
State Bank of India chief general manager (AP circle) outlined the bank’s offerings for exporters, who he said were the only segment to get credit at rates below the base rate.
