CII suggests government to lower freight, power costs for exporters to promote outbound shipments
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With an aim to promote outbound shipments, industry body -- Confederation of Indian Industry (CII) has recommended the government a number of measures, including lowering freight and power costs for exporters and setting up a shipping regulator. CII National Committee on EXIM Chairman and Patton Group's MD Sanjay Budhia also urged for fast-tracking establishment of an export promotion body. He said there is also a need to do an internal export promotion and marketing exercise to get more businesses on the export markets.
Budhia said ‘Can we consider lower freight and power costs for exporters. It is not required to have subsidies but calibrated rates so that exporters are not cross subsidising other consumers. In this regard, including electricity costs under GST could be a way out to lower tax incidence’. He added that the government can consider a carve-out under the national logistics policy for investments in trade-related infrastructure.
He further said States should be encouraged to work on industrial park infrastructure, connectivity modes and faster clearances. He added that ‘Last year Indian exporters faced huge issues due to shortage of containers and high freights charges...With situation stable now, we should have our own shipping regulator and shipping line, which can protect Indian exporters during such turbulent times’.
