The Hindu Business Line : PM for inter-ministerial meets to help solve exporters' woes

THE Prime Minister, Dr Manmohan Singh, today said he favoured structured periodic meetings at intervals of six months or more often between the Finance and Commerce and Industry Ministers so that exporters have a forum to present their problems.

Presiding over a meeting with the Chairpersons of major Export Promotion Councils (EPCs) here, the Prime Minister emphasised the importance of the export sector both in terms of employment generation and enhancement of economic activity.

Underlining the need for inter-ministerial coordination to ensure that trade and industry is spared the high transaction cost that affects export competitiveness, the Prime Minister also exhorted the exporters to come up with practical suggestions, which are in conformity with the WTO obligations.

He hoped that India would be able to enhance its market access in the post-MFA (multifibre arrangement) regime.

Dr Singh further suggested that the team of officers from the Department of Commerce and Ministry of Finance may meet Dr C. Rangarajan, Chairman, Economic Advisory Council and Member, Planning Commission, to have an in-depth look at the issues relating to the export sector.

The occasion would present an opportunity for the exporting community to highlight issues such as the need to provide stable duty remission regime, reduction in transaction costs, augmenting modernisation efforts in the textile sector through enlargement of the Technology Upgradation Fund, government support to effluent treatment in the tanning sector and enhancing availability of man-made fibre at competitive rate within the country for exports, among others.

The exporters also highlighted the adverse impact of the unrebated service tax on post-manufacturing export related activities and that of the fringe benefit tax.

They expressed hope in achieving enhanced level of investment and quantum leap in employment generation.

The President of Federation of Indian Export Organisations, Mr O.P. Garg, recounted the high transaction cost the trade and industry confront today and sought a stable policy regime that would help exporters focus more on core activity of stepping up exports, instead of frittering away their energy in seeking relief from various vexatious duties and levies.

They also pleaded for a simple, transparent reimbursement scheme covering various kinds of duties and taxes slapped in inputs used in export production.