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EEPC asks Centre to tweak promotional schemes in view of fall in exports

03 Feb 2016 Evaluate

The Engineering Export Promotion Council (EEPC) of India in its meeting with Commerce and Industry Minister Nirmala Sitharaman has urged the government to look into the issue of a sharp fall in engineering exports. EEPC in the meeting to discuss reasons for the decline in exports and ways to promote India's exports, has said that the promotional schemes for external trade must be put back in place immediately in the wake of worsening conditions in the global market.

EEPC further said that the move to impose the minimum import price on steel has created considerable uncertainty in the market and is bad for engineering exports and one of the reasons for the sharp decline in December 2015, which is to be addressed on the immediate basis. Giving various suggestion EEPC chairman TS Bhasin said that a new scheme should be announced where the benefits mount up for all tariff lines and for all countries by keeping the MEIS (Merchandise Exports from India Scheme) aside. This will lower transaction costs as the need for landing certificates or any other alternatives will not be necessary. Or else the government should increase the MEIS benefit, extending them to Category C countries.

The other issues raised by EEPC included demand for a technology upgradation fund to help the MSME sector catch up with the latest knowhow. EEPC said that the country must have FTAs (free trade agreements) with some of the  countries like CIS, Africa and Latin America and regions and develop greater relations and diversify exports to these countries and have own warehouses in Latin America, so that India can lower the delivery times.

 

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