With very little hope of export sops in the coming budget, trading community is betting big on concessions from states in the form of refunding state taxes and improvement in export-related infrastructure.

Federation of India Export Organisation (FIEO) has written to all state governments to come up with state export promotion policy that they think will help states to create more employment opportunities and raise per capita income besides accelerating industrial growth.

Fieo president Rafeeque Ahmed said that a committee headed by chief advisor Jag Mohan Bhanot has taken the initiative and talks are currently going on with stakeholders in Punjab and Haryana.

In fact, Andhra Pradesh seems to have already taken a lead with its export promotion policy for 2011-15 by which it aims to double the state’s share in India’s overall exports to 10 percent by 2015 from prevailing 5 percent.

As per a Fieo proposal made to all concerned states, exporters should get refund of state taxes, like VAT, octroi, mandi tax and electricity tax under the state export promotion policy on the lines of central taxes so that the overall transaction cost goes down. Besides, states need to identify potential export items and accordingly give thrust on them to maximise profits.

“States in the north are facing stiff competition from states closer to sea as they incur huge inland cost, thereby making exports uncompetitive. Hence, there is a need for infrastructure development and it is necessary that states fully utilise the opportunities available under ASIDE scheme (Assistance to States for Developing Export infrastructure and Allied Activities) and formulate comprehensive policies for promoting exports from the state,” Bhanot told Financial Chroncile.

yogimassharma

@mydigitalfc.com