(MENAFN- KNN India)
New Delhi, Dec 26 (KNN)
In a pre-Budget consultation meeting chaired by Union Finance Minister Nirmala Sitharaman on Thursday, the Federation of Indian Export Organisations (FIEO) called on the government to capitalise on potential opportunities arising from escalating trade tensions between the United States and China.
As the US is set to impose higher tariffs on China, FIEO highlighted that India stands to gain significantly in sectors such as electronics, automotive parts, apparel, chemicals, and toys, among others.
According to a study conducted by FIEO, India could see an additional USD 25 billion in exports due to this ongoing trade conflict.
To tap into these opportunities, FIEO proposed the creation of a dedicated marketing scheme focusing on the US market.
The body recommended a Rs 250 crore annual corpus (Rs 750 crore over three years) to enhance India's presence through exhibitions, buyer-seller meets, and partnerships with major US retailers and distributors.
"Proactive government support will be key to ensuring this initiative's success," said FIEO President Ashwani Kumar during the meeting.
In addition, FIEO urged the extension of the Interest Equalisation Scheme, which is set to expire
on December 31, 2024. The current scheme, which offers financial relief to MSME exporters in manufacturing, is capped at Rs 50 lakh annually and is seen as insufficient for many firms.
FIEO suggested increasing this cap to Rs 10 crore per exporter to enable quicker order fulfillment and more competitive pricing.
Further, the trade body requested a tax deduction of 200-250 per cent for research and development under Section 35(2AB) of the Income Tax Act, emphasising its importance for boosting exports in emerging sectors.
FIEO also advocated for strengthening India's shipping infrastructure by increasing equity in the Shipping Corporation of India or fostering private sector participation to reduce reliance on foreign shipping lines, which currently cost India over USD 100 billion annually in transport charges.
The pre-Budget consultation meeting, attended by stakeholders from various sectors, marks an important step toward formulating strategies to boost India's export potential.
(KNN Bureau)
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