Policy a big boost: Exporters

Exporters welcomed the Foreign Trade Policy saying that the policy will encourage employment generation and hike productivity. But there ar...

Exporters welcomed the Foreign Trade Policy saying that the policy will encourage employment generation and hike productivity. But there are still complaints that several benefits will only apply to the bigger, established players.

‘‘This is a progressive policy, even though the small scale (SSI) exporters could have done with a more sympathetic attitude,’’ said Rafeeque Ahmed of the Federation of Indian Export Organisations (FIEO). ‘‘But why should the government differentiate between smaller and larger players when offering benefits under EPCG. All should be given the same status for imports and exports,’’ he asked.

Players across sectors felt the duty free imports of capital goods and continuing special focus on agro-based, handicrafts, gems, jewellery and leather sectors would boost both employment and productivity.

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Vijay Thakur, CEO of export house Cottage Crafts of India said, ‘‘India has an 18 per cent share in the world carpet business with 45 per cent of the $550 mn carpet exports to the United States. Bigger carpet makers will benefit from service tax exemption and capital goods imports, but the condition for Rs 5 crore turnover to avail of 365 day redundancy period will exclude many, since the average unit size is Rs 3-4 crore.’’

The handicrafts and leather sectors, which got the most attention, are also seeking greater government focus on the drivers of the industry, apart from the concessional duty structures. ‘‘The government is doing a great job. To truly focus on grassroots and meet the challenges posed by China in textiles and apparels, there is a need to concentrate on training facilities for manpower,’’ said Madhu Kapoor of Apparels and Leather Technologies (ALT).