Exporters & meet to seek changes in tariff regime

The one-day Indian Exporters’ conclave, to be held in Mangalore on February 13, under the aegis of the Federation of Indian Exporters’ Organisation (FIEO), will demand its share of empowerment and policy-backing. Exporters claim that if FIEO’s recommendations are put into action, the country’s compound annual growth rate (CAGR) will touch 25% at $2,480 billion by 2020.

FIEO chairman Walter D’Souza said: “It may not be possible for the central government to create such a massive set-up of seamless tariff regime conducive for export promotion. It has to be compounded and coordinated by state governments. The conclave will demand from the state governments to formulate their own export promotion policies depending upon their range of export produce,” he said.

The exporters’ body will also press for a lower ‘transaction cost’ (fees, general tariffs and levies) on par with other exporting countries. “Indian export business operates on 12% transaction cost, while several exporting countries operate on 1% or even less for some commodities. If the transaction costs come down, the volumes of export will increase. The export business works on wafer-thin margins, but if the volumes increase due to lower transaction cost, the export activities will get a definite boost,” added D’Souza.

The conclave will also be an opportunity to press for a blanket tariff structure in all the states or with a variation of less than 1%, a long-standing demand of the exporters.

The year 2012 has been projected to be a difficult year for world trade. The World Bank has revised its forecast by pegging the growth in world trade at 4.4%, while the IMF had put it at 4%. India had a potential to grow faster than these figures provided the country takes up infrastructure development on a war footing. Roads, ports, airports and railway connectivity to the last mile should be in place, D’Souza said.

Source : dnaindia.com