‘Time for a Serious Review on Policies in Order to Revive Engineering Exports’

‘Time for a Serious Review on Policies in Order to Revive Engineering Exports’

Chairman of Engineering Export Promotion Council (EEPC) of India T S Bhasin emphasized on the urgent need of policymakers to execute an immediate revival plan for Indian engineering exports. He said that the government should help improve competitive strength of the exporters, particularly in the engineering sector by revisiting some of the flagship schemes of the Commerce Ministry.

Bhasin in a statement said in the wake of a sharp fall in the exports for over 15 months and re-modelling of the global supply chain where outsourcing is being replaced by domestic supply of inter-mediaries, the heady days of the double digit growth would stay only in memory, at least for some time.

Giving specific suggestions, the EEPC India Chairman said in the BoT meeting on April 6, the Commerce Ministry’s MEIS (Merchandise Exports from India) scheme should be set aside and replaced with a new dispensation wherein the benefits accrue for all tariff lines and for all countries., he said adding that this will also lower transaction costs as the need for landing certificates or any other alternatives will not be necessary.

Besides, he said the MSME investments limit in plant and machinery is yet to be enhanced by the Government which had proposed to enhance the upper limit to Rs. 30 Crores from the present level of Rs. 10 Crores. This has not yet been done, though the Bill for the amendment was introduced in April 2015. “We request the Government to increase the limit as it is important for the success of the ‘Make-in-India’ initiative of the Government of India. This will enable the MSME Sector to play a pivotal role in the laudable initiative of the Prime Minister Mr Narendra Modi and the success of the ‘Make-in-India initiative as well as becoming part of the global value chain “.

He further said that there are many countries which are sanctioned against by EU and USA, such as Syria, Sudan, and Lebanon etc. The RBI allows payments to be received from Open cover countries.” However, our banks do not accept even such payments even if they are from Open cover countries. It is suggested that either we have a currency swap agreement or Rupee Trade Mechanism for this purpose. In fact we should try to have Rupee Trade Mechanism with those countries with whom we have a trade surplus”.