FIEO Tells Government To Simplify Doing Business In India

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FIEO Tells Government To Simplify Doing Business In India
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The Federation of Indian Export Organisation (FIEO) wants the government to announce a new Foreign Trade Policy (FTP) focusing on marketing, branding, e-commerce and services sector, and a five-year target for exports. The apex body has also recommended the government to re-introduce interest subvention on exports.

“Government should immediately re-introduce interest subvention on exports as uncertainty has impacted Micro Small and Medium Enterprises (MSME) exporters as banks have stopped passing interest subsidy to them thereby raising cost by 3%,” said M Rafeeque Ahmed, President of FIEO.

Ahmed has expressed his disappointment over the modest exports growth last month and attributed it to weak and unsystematic global recovery. “While the US and emerging economies are posting good results, Europe has again fallen into contraction. Another reason may be less spectacular growth in petroleum exports largely on account of softening of crude prices which has helped us in managing imports and trade deficit,” noted Ahmed.

He also emphasized on the need to cut down on the paperwork required for doing business in the country. He asserted that the government needs to implement far reaching changes in procedures to reduce the high cost of operating a business in India. “Simplification, self attestation, EDI connectivity, risk management system should be the main plank for reducing transaction time and cost,” stated FIEO chief.

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The growth in exports slowed down to a five-month low in August, recording a rise of 2.5% over August 2013. On the other hand, the imports rise by 2.08% despite a decline in oil imports.

Image: Indiatimes.com