CII recommands better trade infrastructure to boost exports
04 Apr '07
3 min read
High inland haulage charges, long turnaround time in the Indian ports and long delivery periods have been identified as main factors affecting cost competitiveness of Indian exports. Inland haulage costs from Delhi to Mumbai is estimated to be approximately 30 percent of the freight charges from India to Europe.
In addition to this, exporters are of the opinion that procedural delays add up to the cost due to inadequate infrastructure in India, the survey points out.
Simplify Procedures : Equally important is simplification of import procedures. Cost of import is very high in India in comparison to China. A World Bank report puts it at US$ 1244 per container for India, and the corresponding figure for China is only US$ 375 per container.
The issue of continuity of export-promotion schemes and incentives within the trade policy of India is another area of concern for the exporters. Abrupt discontinuance of schemes like 'Target Plus' scheme has adversely impacted export plans for the companies.
Another issue is categorisation of exporters for the purpose of MDA (Market development Assistance), which the exporters feel should cover all segments of exporters rather than a select few ones.
Exports to Sri Lanka face regular delays due to the longer inspection procedures of the EICs (Export Inspection Council) for ISLFTA certificate. Exporters suggest an independent agency for inspection purposes be set up.