New Delhi: Incentives can be given to exporters, but they have to be justified, reasonable and compliant with global trade rules, Commerce and Industry Minister Piyush Goyal said on Wednesday. He was interacting with representatives of different export promotion councils, including apparel, leather, gems and jewellery, pharma and engineering, through video conferencing.
The minister called upon exporters to identify their strengths, potentials and competitive advantages in specific sectors, and focus on harnessing them in the world markets.
In the post-COVID era, he said, there is going to be a perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade.
Goyal assured them that the government will be a pro-active supporter and facilitator in their efforts, and the Indian missions abroad can play an important role in that.
"Incentives can be given, but they have to be justified, reasonable, and WTO (World Trade Organization) compliant," he said.
Goyal also said the ministry is working on identifying the specific sectors which can be taken forward in the immediate future for the exports purpose.
"India is going to have a bumper Rabi harvest this season, and our storage facilities are overflowing. At the same time, there are news stories that there is shortage of food items in several countries.
"Many places are not having food of appropriate quality, taste and quantity, due to disruptions in the supply chains because of COVID-19 crisis," he said, adding this could be a good opportunity for export of agricultural and processed food items.
The minister exhorted the councils to undertake brainstorming sessions with their members, and come up with similar actionable and big-ticket ideas.
During the meeting, exporters raised various issues pertaining to banks, cash flow and incentive package. Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said that banks are not passing the benefits to exporters which were announced by the RBI.
"Liquidity is a major problem for exporters. Without proper cash flow, it will be difficult for manufacturing units to start operations. We urged the commerce minister to hold a meeting with the RBI on this matter," he said.
He added that several developed and developing countries have come out with a stimulus package and now India too should come out with one. He also said that several countries are paying salaries and wages in the private sector in different forms. "The government should also look at that," he added.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel raised the issue about different opportunities coming in the textiles sector. He urged the government to lift export ban on cotton, saying "huge demand is there for cotton in the global markets".
Exporters are demanding an incentive package from the government. Apparel exporters have requested the government to extend the interest subsidy scheme for a minimum of two years and at a rate of 5 per cent for all apparel exporters.
Sakthivel said that given the extremely volatile and uncertain cash flow situation of the exporters, there is a need to continue with the interest subvention scheme, which expired on March 31.
