FTP review decisions positive for MSMEs however currency – refund challenge remain: FIEO
New Delhi, Dec 6 (KNN) With the Ministry of Commerce and Industry announcing a slew of measures assuring support to the export sector Micro, Small and Medium Enterprises (MSMEs) including incentives, the decisions are being seen in positive light on a larger note, Federation of Indian Export Organisations (FIEO) informed.
Talking to KNN, Ajay Sahai, Director General and CEO of Federation of Indian Export Organisations (FIEO) said that the government’s call on the FTP does register the fact that the concerns of the Micro, Small and Medium Enterprises are taken into consideration.
He said that the different complications that the export sector were facing in the aftermath of the stress under Goods and Services Tax (GST) have been factored by the Ministry and the incentives for labour intensive sector is a big welcome.
Sahai however raised the concerns of the sector with regard to the overall global scenario.
“The global demand is not at a very good pace and India at present is to compete with countries that have their domestic currencies in their favour, whereas for India the situation is opposite” he added.
Elaborating further Sahai said that the early GST and the refund blockage proved to be a bottleneck for the exports at a time when the global scenario itself isn’t looking very good.
On the other aspects of the policy, Sahai said that the government allotting a different portfolio for the logistics sector was very important considering the fact that soon there would be an e way bill mechanism rolled out in the country.
A separate office to look into the logistical matters with a new norm early next year will help address the needs and grievances in a more comprehensive manner, he said.
Also the FTP’s focus on the ease of doing business elements once gets implemented successfully will help things get better in the future, Sahai said.
Commenting on the capital blockage, FIEO head said that the exporters continue to face the problems but things are likely to ease up in the coming times as GST gets more familiar to the economy.
Also on the latest announcements, industry body FICCI in a press statement welcomed the decision.
The statement further said that the trust-based approach as reflected in the new self-ratification scheme for duty-free import of raw materials is likely tp help in expediting export of a number of important products including engineering, pharmaceuticals, chemicals, textiles and high-tech products. (KNN/DA)