FIEO urges Centre to revive export credit, address logistics bottlenecks
New Delhi, July 3 (TNT): The Federation of Indian Export Organisations (FIEO) on Friday urged the Centre to revive priority sector export credit, address logistics bottlenecks, support exporters in the green transition and operationalise GST refunds for foreign tourists to boost India’s export competitiveness.
Presenting its recommendations at the Board of Trade (BoT) meeting in New Delhi, FIEO said exports have remained resilient despite global uncertainties, but institutional credit support has weakened, with priority sector export credit declining by nearly 14 per cent in the recent period.
The exporters’ body said inadequate access to affordable pre-shipment and post-shipment finance has created liquidity constraints, particularly for MSMEs, affecting their ability to execute export orders and expand into new markets.
It urged the government to engage with the Reserve Bank of India and banks to ensure timely availability of export finance at internationally competitive interest rates.
Highlighting logistics-related concerns, FIEO said high ocean freight rates, shortage of containers and vessel space, and multiple non-transparent charges imposed by shipping lines were increasing export costs and eroding India’s global competitiveness.
It also sought a transparent freight framework, improved container availability and a permanent institutional mechanism to monitor logistics issues.
The organisation also called for the creation of an Apex Green Transition Fund to help exporters adopt cleaner technologies, improve energy efficiency and comply with emerging global environmental regulations such as the European Union’s Carbon Border Adjustment Mechanism (CBAM).
It also proposed sector-specific Green Transition Helpdesks to assist exporters with carbon accounting, sustainability reporting and environmental compliance.
FIEO further urged the government to operationalise the GST refund mechanism for foreign tourists provided under the IGST Act, 2017, saying the scheme has remained unimplemented for nearly nine years.
It said a technology-enabled refund system at major international airports would encourage purchases of Indian products, boost retail exports, increase foreign exchange earnings and promote sectors such as handicrafts, textiles, gems and jewellery, leather products and handlooms.
The exporters’ body said implementation of these measures would strengthen India’s competitiveness in global markets and support the country’s ambition of becoming a USD 2 trillion export economy.
TNT KS
