Chennai: As the mutual tariffs introduced by the US government enter into force as of 7 August, the Reproduction of the Indian government’s interest equalization plan, increasing the interest subsidies rate, partially reducing the logistics costs for product products, reducing the import tasks on key inputs and providing a few steps to improve the market for the deficit of the recipe between Indian exporters and rebellion.
The very explained mutual tariffs come into force until August 7, USA. 15-20 percent bracket Bangladesh, Malaysia, Indonesia, Vietnam, Pakistan, Sri Lanka and the Philippines compared to their peers compared to a 25 percent tariff with a disadvantaged disadvantage.
Labor is intensive, low-margin sectors, other Asian countries with a 5-6 percent tariff difference with a difficult competition. However, the industry believes that additional support from the government can make products competitive.
Currently, the government helps exporters with the disadvantage of duty and Rodtep or RosctTL programs. The disadvantage of the duty disadvantage of the exporters’ tasks paid for the raw material imported or supplied in the country. This disadvantage varies between 0.5 and 6.5 percent depending on the products. Exporters who import raw materials completely for exports do not need to pay the duties under the authorization plan in advance.
The hidden taxes and taxes paid by exporters and wages for exporters and water and local body taxes are returned under Rodtep and Rosctl schemes.
The interest equalization plan, which provides a discount on the interest paid for the loan benefiting by the exporters, was stopped last year.
GTRI, “Annual Plan annual budget and exporters annual budget and exporters, especially for MSMes, restart with a five -year commitment to provide subsidized loans.
Within the scope of the stopped plan, the government provided a discount of 3 percent for interest rates ranging from 8.5 percent to 14 percent on interest rates for MSMEs. “A few years ago, the government provided 5 percent for MSMes and 3.5 percent discount for non -MSMes. This could be revived to equalize our loan rates with some competitors,” he said.
Although the government promised to expand the plan, it has not yet been restored. In the current budget, the government has allocated 2.250 RS for export promotional plans and fell 17 percent from 2,718.73 RRs allocated in revised budget forecasts for 25 financial years.
In addition, the government should reduce import duties and facilitate quality control order norms in various raw materials that increase the cost of the final product. Looking at the minimum support price on entrances such as cotton will make textiles competitive.
In addition, several products produced internally carry high logistics costs. The government may partially return the logistics cost of such exporters and manufacturers in land -locked states. The logistics cost of agricultural products in India is also high. “2.5 to 3 percent repayment for logistics fees can reduce the cost of products,” he added.
The government may partially return travels undertaken for marketing within the scope of the Market Development Fund.
