Need to move towards a competitiveness-based export model: Commerce Secretary
Commerce Secretary Rajeev Kher on Thursday said there was a need to move towards a competitiveness-based export model in the country from a purely incentive-based export model.
"We have to move out of a purely incentive based export model to a competitiveness based export model. Export today is an important tool for economic development. To enhance India's exports it is important to promote both 'Brand India' and 'Indian Brands'," said Kher, at the 4th (Confederation of Indian Industry), CII Export Summit 2014.
He also informed the audience that the benefits that India enjoys at present under Annex VII of the WTO Agreement on Subsidies and Countervailing Measures (ASCM) may soon come to an end.
"The textile sector in India is no longer eligible for export subsidies as it has become competitive," he said.
HJe further said that the global trade discourse has shifted towards value chains and that the industry needed to engage with the government to identify specific sectors where such value chains will be beneficial for the country for deepening the presence in global markets.
He also elaborated India's ongoing Regional Comprehensive Economic Partnership (RCEP) negotiation.
The RCEP is being negotiated by all 10 members of the Association of Southeast Asian Nations, along with China, Japan, South Korea, Australia, New Zealand and India.
Executive Director, EXIM Bank, David Rasquinha, elaborated the importance of high -tech exports and Sanjay Budhia, Chairman, CII National Committee on Exports and Imports, and MD, Patton Group, said that reduction of transaction of transaction costs in India is crucial aspect of achieving export competitiveness as it adds upto 10-12pc of extra cost.
He also said that simplification of existing incentive scheme is the need of the hour as these are cumbersome and time consuming.
"The robust performance of India's international trade over the two decades reflects India's increasing integration with the global economy," said Chandrajit Banerjee, Director General of CII.
He also highlighted the importance of technology-intensive goods in India's export basket.
A report jointly prepared by FNF and CII titled "Eliminating Internal Barriers to Accelerate Growth - Unlocking the Potential of the States in India" was released by the Commerce Secretary at the Summit.
The meeting was attended by over 100 industry representatives.
(Posted on 21-02-2014)
Free Yearly Horoscope: Select your zodiac sign