Indian exporters are urging the government to extend the current interest subsidy schemes and make duty rebates permanent to bolster their competitiveness in the global market. This plea comes amid rising costs and challenges posed by international trade dynamics, which have been further exacerbated by the ongoing geopolitical tensions and economic fluctuations.
Source:- news 18
The interest subsidy, which has provided critical financial relief to exporters, is set to expire soon. Exporters argue that without this support, their ability to compete with countries that offer more favorable financing terms could diminish significantly. They highlight that many of their international counterparts benefit from sustained financial incentives, allowing them to offer competitive pricing and better payment terms to buyers. Extending this subsidy would enable Indian exporters to maintain their market share and encourage new investments in various sectors.
Additionally, the demand for permanent duty rebates reflects concerns over the increasing burden of import tariffs on raw materials and components essential for manufacturing. Many exporters contend that these duties hinder their ability to price their products competitively in foreign markets. By establishing permanent duty rebates, the government would not only alleviate this financial strain but also incentivize higher production levels and investment in domestic manufacturing.
The Indian government has previously demonstrated its commitment to supporting the export sector, recognizing its vital role in driving economic growth and employment. However, with global markets evolving rapidly, exporters stress the importance of timely and sustained policy measures. They believe that by implementing these changes, the government can foster a more conducive environment for exports, ensuring long-term sustainability and growth.
In conclusion, extending interest subsidies and instituting permanent duty rebates are crucial steps that Indian exporters advocate for to enhance their competitiveness, mitigate financial pressures, and ultimately drive economic growth in the country. The government’s response to these demands will be pivotal in shaping the future of India’s export landscape.
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