Exporters Seek Govt Push for India-Based Global Shipping Line

New Delhi, Jun 26 (KNN) In a move to boost India's export competitiveness, industry leaders are urging the government to establish a home-grown shipping line with global reach.

This proposal, presented during a pre-budget meeting with Finance Minister Nirmala Sitharaman, aims to significantly reduce shipping costs and strengthen India's position in international markets.

Federation of Indian Export Organisations (FIEO) President Ashwani Kumar highlighted the potential savings, stating, "A 25 per cent share by Indian shipping line can save USD 50 billion a year and will also reduce arm twisting by foreign shipping lines on medium and small businesses."

Kumar noted that India's transport service charges reached USD 109 billion in 2020 and could escalate to USD 200 billion by 2030 as exports approach the USD 1 trillion mark.

The government is reportedly considering the proposal, though details on its structure remain undisclosed. Beyond cost reduction, an Indian-owned shipping line could address concerns about international vessels bypassing Indian ports in favor of Southeast Asian cargo opportunities.

Additional requests from the export sector include several key proposals. The FIEO has called for an extension of the Interest Equalisation Scheme for five years, along with an increased interest subsidy from 3 per cent to 5 per cent.

This move is aimed at providing financial support to exporters and enhancing their global competitiveness.

Furthermore, the organisation has proposed boosting the budget for marketing support under the Market Access Initiative to Rs 500 crore annually. This increase would provide exporters with more resources to explore and penetrate new international markets.

The leather and footwear sector is seeking inclusion in the Production Linked Incentive (PLI) scheme. This inclusion would provide a significant boost to the sector, encouraging increased production and potentially attracting more investment.

Lastly, the gems and jewellery industry has requested a reduction in import duties on precious metals. This measure is expected to free up working capital and enhance the sector's export potential.

These proposals come amidst challenges in key export sectors, with gems and jewellery exports declining 13.8 per cent year-on-year to USD 32.7 billion in FY24, and leather exports dropping 9.9 per cent to USD 4.2 billion.

(KNN Bureau)