New Delhi: Union Budget 2022-23 hasn’t directly encouraged domestic manufacturing of containers to address exporters’ logistical challenges but the development of cargo terminals under the PM Gati Shakti Master Plan will help in the long run, Federation of Indian Export Organisations (FIEO) President A. Sakthivel told ThePrint.
FIEO is a body under the Ministry of Industry and Commerce responsible for representing and assisting Indian exporters in foreign markets.
Ahead of the budget, the body had called for a Production-Incentive Scheme (PLI) for domestic container manufacturing to counter Covid-induced logistical challenges such as high freight charges and global shortage of containers.
“They [Finance Ministry] haven’t directly encouraged logistical problems (solutions) or manufacturing of containers but they have given the PM Gati Shakti project under which they’re going to develop 100 mega container stations,” Sakthivel said.
“Definitely, that will help us out to some extent…in the long run,” he added.
In Budget 2022 Tuesday, Finance Minister Nirmala Sitharaman announced that 100 Gati Shakti cargo terminals for multimodal logistics facilities will be developed over the next three years. She added that the government would provide Rs 20,000 crore to speed up the Gati Shakti Master Plan and implement development projects.
Sakthivel added that both the MSMEs and exports sector were “well covered” in the Budget.
“We had requested for duty free import on embellishments which were not given in the last Budget but this year it has been considered. This will help not only apparel, but leather, handicrafts and handloom sectors,” he added.
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FTP should address agri exports, overseas marketing
Asked about the lack of direct mention of agri exports in the Budget other than marine products, Sakthivel said: “I think they will consider agri exports separately because this sector always needs transport subsidies. I think that will maybe come in the FTP (foreign trade policy).”
The 2015-2020 FTP, set to expire on 31 March, will make way for a new policy to be rolled out in April and applicable for the next five years.
FIEO also hopes a marketing assistance scheme for exports will come in the FTP too. Ahead of the Union Budget, the body had suggested double tax deduction for overseas marketing noting, “Our MSMEs lack exposure despite having the best of products”.
Asked about Rs 10,000 crore ‘Districts as Exports Hub’ initiative likely to appear in the FTP, Sakthivel said: “I want to tell the central government that when they are selecting districts (for this scheme), they should see that the district identified is also encouraged by the state government.”
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