Seeking support from states to boost shipments, exporters body FIEO asked them to consider extending market assistance benefits on the lines of central government schemes.
Federation of Indian Export Organisations (FIEO) President S C Ralhan said that states have a fundamental role to play in promoting India’s exports as all factors of production are within the jurisdiction of the states.
“We would urge the states that besides, the marketing assistance available under various central government schemes, states may consider introducing similar schemes particularly for sectors having export potential,” he said in a statement.
He also said that exporters need support of the states so that they do not face the liquidity problem under the Goods and Services Tax.
“The merchant exporters, who at present avail exemptions through various forms, may be given the same facility under GST. We have many meetings with the central government but they feel it will be possible only if the states agree to the same as exports are subject to IGST which has both central GST and state GST component,” he added.
Further, Ralhan said that as Indian roads carry nearly 65 per cent cargo against the global trend where railway is the major contributor, states should focus on improving the last mile connectivity of major exporting hubs to ICDs and ports.
“Quality of road including their load bearing capacity may be upgraded for smooth transit of export goods,” he said. The top five states that performed well in 2015-16 in exports are – Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh.