By TIOL News Service

CHENNAI, NOV 24, 2013: ADDRESSING exporters at a function organised by FIEO, the Union Finance Minister, Mr P Chidambaram, said that domestic savings and exports are two pillars of Indian economy which have performed well even in difficult situations. Finance Minister was of the view that exports alone would provide effective solution to manage trade deficit as too much compression in import is neither possible nor desirable. Exports will also help in reducing CAD as well as capital flows will be difficult to attract in view of low global growth.

Mr Chidambaram assured exporters that newly developed “Risk Management System” on exports would reduce dwell time as 70% of the cargo will be cleared without physical examination. He admitted the need for proactive and positive approach of the Government agencies for reducing transaction time and cost. Responding to the request of exporters for expansion of export promotional schemes, Finance Minister said that higher budget allocations will be made for such schemes of DGFT in the next Budget.

Earlier, Mr. Rafeeque Ahmed, President, FIEO, assured that exports growth will continue in balance months of the fiscal and current account deficit would be brought within US$ 50-60 billion. However, he suggested for creation of an Export Development Fund, Grant of Duty Drawback at the Let Export Order stage to facilitate drawback, bringing exports under priority sector lending to augment the flow and support manufacturing to sustain exports.

Dr. Anup Pujari, DGFT asked the exporters to think out of the box and suggest measures for the new Foreign Trade Policy 2014-19. He suggested that new policy should look at reducing the number of schemes and exploring the possibility of granting export benefit based on incremental exports so as to judge the efficacy of the scheme.