After Prime Minister Narendra Modi’s meeting in regard to boosting exports, the Central Board of Indirect Taxes and Customs (CBIC) is readying itself to remove the roadblocks for a much faster clearance of export cargo.
“There should not be any hold-up of export cargo and process that remains a hurdle for exports should be examined and, where possible, eliminated or else streamlined,” CBIC Chairman M Ajit Kumar said in his communication to officers. Such a strategy is critical at a time when the government has set a target of achieving $400 billion of merchandise exports during the current fiscal year, $500 billion for FY23 and $1 trillion by FY26.
On August 6, the Prime Minister held a meeting with the Heads of Indian Missions abroad and stakeholders in the trade and commerce sector to boost India’s exports.
“Today, as we try to reclaim that old stake in the global economy, the role of our exports is very important. In the post-Covid world, when there is an extensive debate on the global supply chain, we have to maximise our efforts to take advantage of the new opportunities. You are aware that our exports constitute about 20 per cent of GDP. Considering the size of our economy and our potential, manufacturing and service industry base, there is a huge potential for exports to grow,” PM Modi had said.
Referring to this meeting, Kumar said it aims to serve as a powerful engine to kick start the economy that has been passing through a difficult phase since the outbreak of the pandemic.
Modi listed four factors that would help accelerate exports from India — increasing domestic manufacturing, ironing-out problems of transportation, improving logistics and the need for the Central and State governments to walk shoulder to shoulder with exporters for expanding the international market for Indian products.
“In this connection, it is important for us to further streamline our procedures and ensure that the processes are glitch-free and facilitate exports,” Kumar said. Further, he mentioned that the policy wings of the CBIC should engage with the Custom Houses and investigative agencies to iron-out issues, ‘if any, at the earliest.’
This is the next big move after the Centre notified RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme guidelines and rates on Tuesday. It claimed that the scheme for zero rating of exports will boost India’s exports and competitiveness in the global markets. The rates of RoDTEP will cover 8,555 tariff lines.
The Finance Ministry and the Commerce Ministry have already taken a number of measures to boost export. These include extension of Foreign Trade Policy (2015-20) till September 30, Interest Equalisation Scheme on pre and post-shipment rupee export credit till September 30, implementation of Rebate of State and Central Taxes and Levies (RoSCTL) with effect from January 1, 2021, launch of Common Digital Platform for Certificate of Origin to facilitate trade and increase FTA utilisation by exporters.
It also incluedes implementation of Comprehensive ‘Agriculture Export Policy’ to provide an impetus to agricultural exports related to agriculture, horticulture, animal husbandry, fisheries and food processing sectors.