Home / Knowledge / News / Rebates & incentives needed to compete in world market: FIEO
Rebates & incentives needed to compete in world market: FIEO
26
Aug '09
Federation of Indian Export Organisations (FIEO), the apex trade body of the exporters have submitted its wish list to the Ministry of Commerce for inclusion in upcoming foreign Trade Policy to be announced on 27th August. Mr. A Sakthivel, President, FIEO said the in the present circumstances, when world trade in reeling under pressure and demand is low, only competitive pricing can be the solution. Direct and indirect taxes considerably add to the cost of the export products in India. A reduction in the taxes will help exporters to do their pricing competitively.

Scheme to rebate State taxes: GST is likely to be introduced as dual GST one for Central taxes and other for State taxes. The merging of two into a comprehensive national GST will take a long time. Exports are already burdened with the incidence of State and local levies which for certain products in certain States may be as high as 5 - 6% of the FOB value. Foreign Trade Policy should therefore, announce a new scheme to rebate State and local levies on an average basis.

Enhancement of incentives under various promotional schemes given Chapter 3 of the Policy: The Foreign Trade Policy provides incentives through FPS, FMS, Market Linked Product Scheme and VKGUY where benefit ranges between 1.25% to 5%. Due to very low benefit under few schemes, exporters are reluctant to avail it. The export benefit under all these schemes should be a minimum of 3.75% and all such schemes may be extended till 31st March, 2012.

Duty free fuel for exports under DEPB/drawback schemes: While Foreign Trade Policy provides for duty free fuel for units having captive power plants and operating under Advance Authorisation. However, the same benefit is not available to such units while exporting through drawback and DEPB schemes. Fuel cost is one of the important components and therefore, the same should be allowed at near the international price to all exporting units either having captive power plants or using generators for export production.

Maintenance of average export obligation: Indian exports were showing a growth of over 20% since 2002-03. However, due to negative growth in world trade, it would be difficult for Indian exporters to maintain such high growth rate so as to adhere to both average and additional export obligation under EPCG scheme. The average export obligation may, therefore, be fixed at 50% of the preceding three years exports particularly for sectors showing negative growth and services sectors such as Hotel and Tourism which are hard hit after 26/11.

Federation of Indian Export Organisations


Must ReadView All

Chinese firm sets up garment production chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up garment production chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

Courtesy: ABARES

Textiles | On 13th Dec 2017

Australian cotton production to grow 4% in 2017-18: ABARES

Cotton production in Australia is forecast to rise by 4 per cent to...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search