Poor infra, complex procedures hurting exports: PHDCCI
Aug 18 2013 , New Delhi
Current adverse market conditions, the cumbersome and cascading tax regime are also acting as major impediments to exports' growth, the survey of 124 small, medium & large exporting enterprises said.
Majority of respondents termed poor infrastructure and complex procedures as lead cause of falling exports, the survey said.
"Current adverse market conditions, operational issues ... Inadequate infrastructure, complex procedures and cascading tax regime are hurting export performance," it said.
After declining for two consecutive months, exports grew by 11.64 per cent to USD 25.83 billion in July.
PHDCCI President Suman Jyoti Khaitan said differential multiple tax regime across production segments leads to inefficiencies in the domestic production and lack of international competitiveness.
The survey said that prevalent operational issues in foreign markets are preventing Indian firms in expanding their export activities.
"High cost of procuring raw materials and movement of goods within the country are also restricting export performance," it said adding exporters face problem in understanding the export payment procedures.
Besides, inadequate essential market information including export assistance available to exporters is also impacting exports growth, it added.
"Complex foreign market regulations and restrictive policies of foreign countries were also named among the important bottlenecks," it said adding time and paperwork required to comply with foreign market regulations is another most cited obstacle.