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Demand for exports sops to MSMEs to be placed before Board of Trade

Updated: Aug 26, 2013 04:00:27pm
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New Delhi, Aug 26 (KNN) India can lower its trade deficit if the government promotes production of capital goods and incentivizes value added products besides boosting exports from the micro, small and medium enterprises.

This suggestion will be given in a presentation before the Board of Trade (BoT) meeting scheduled tomorrow, by the EEPC India (formerly Engineering Export Promotion Council).

According to EEPC, India must lower the manufacturing/engineering trade deficit. This can be done only by promoting the production of capital goods sector in the country.

“We must thus move towards promotion of value added goods in the country. A Technology Upgradation Scheme (TUFs) is the need of the hour and high value added exports must be incentivized,” it said.

It also argued that the  Inter-Ministerial Committee (IMC) for boosting exports from the Micro, Small and Medium Enterprises (MSME) Sector under the Chairmanship of the Finance Secretary in its July 2013 Report had also recommended the need for looking at such a scheme.

The engineering exporters’ body suggested that the interest rate on term loan for addition or renovation of plant and machinery should be same as interest on export packing credit till TUFS is implemented, and margin should be restricted to 10 per cent.

“The recommendations of the Inter-Ministerial Committee (IMC) for boosting exports from the Micro, Small and Medium Enterprises (MSME) Sector (Gujral Committee) and the RBI’s Technical Committee on Exports (called the Padmanabhan Committee) which submitted its reports in July 2013 and May 2013 respectively should be accepted.” (KNN/PC)

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