FIEO urges setting up Export Commissioner’s office in Rajasthan
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Dr. R.K. Dhawan, Chairman, FIEO (NR) addressing the meet. On the dais, from left, Mr. M.S. Khimesara, General Secretary, UCCI; Mr. P N Mittal, Addl. Director (Industries), Jaipur; Mr. M L Lunawat, President, UCCI; and Dr. A K Gupta, General, Manager, RIICO. |
FIEO organized a Seminar on "Export Promotion from Rajasthan" on 11 April at Udaipur to identify exporters’ problems in the area and to help promote exports from Southern Rajasthan. Around 75 leading exporters from the region participated in the Seminar.
Welcoming the participants, FIEO’s Northern Region Chairman Dr. R K Dhawan said that Southern Rajasthan had tremendous potential in the areas of mining & minerals, textiles, gems & jewellery, agricultural & ayurvedic products as well as tourism. Given a conducive environment, he said, exports from the region could increase manifold. He highlighted the overall grim scenario of international market and urged the government for speedy resolution of exporters’ problems so that the exporters from the region got the much-needed relief to stay in the business.
Commenting on the ambitious export target set for the current fiscal at US$200 billion despite missing last year’s target and international market scenario still remaining unfavourable, Dr. Dhawan said that the Federation was not so pessimistic about achieving the target provided the issues concerning exporters were addressed favourably and urgently.
Highlighting the contribution of SMEs towards overall economic development of EU and US, Dr. Dhawan lamented that in a state like Rajasthan there was no space for the SMEs. He requested RIICO to urgently identify suitable areas around Udaipur for setting up SMEs. He also called for faster development of the areas already notified for setting up industrial units. Adequate infrastructure and early resolution of problems would help promote industrial investment in the area, he added.
Speaking further, Dr. Dhawan said that being a landlocked state Rajasthan needed sufficient number of inland container depots and first such ICD should be set up at Khemli. He also urged the State Government to set up adequate number of Agri-Processing Zones in the Southern Rajasthan to promote export of processed foods from the region. Such parks would also help collection, processing and export of forest produce from the adjoining tribal areas, he added.
Dr. Dhawan is of the view that Rajasthan is endowed with plenty of good quality minerals and exceptionally good quality handicrafts and, therefore, a Special Economic Zone in Southern Rajasthan could boost export of decorative stones, minerals and other items from the region. He, however, feels that the state government should formulate foreign trade policy to lay down a roadmap for systematic growth of export of these products from the state. Meanwhile, he urges the Rajasthan Government to set up the office of Export Commissioner in the state to act as a nodal agency for coordinating the activities of the exporters with the state as well as central governments.
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A survey conducted by FIEO in April this year reveals that 38% of the exporters expect less than 5% export growth while 30% of exporters expect the growth to be around 10% and only 10% of the exporters believe that the export growth could be above 15% during 2008-09. |
Revealing the plans of the Federation, Dr. Dhawan said that FIEO officials would soon meet the Industry Minister of Rajasthan and organize an open house in Jaipur.
Mr. M L Lunawath, President, Udaipur Chamber of Commerce & Industry, during his address at the seminar, urged the Union Ministry for Commerce & Industry to announce a suitable package of relief in the form of tax exemptions and reduced credit rates to offset losses borne by exporters on account of strengthening rupee.
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Calling the recent upward revision in drawback rates as highly inadequate, Mr. Lunawath added that even the procedure for claiming supplementary rate was expensive and required early review. He urged the Industrial Department of the State to create a separate fund for modernization and capacity building of small and medium enterprises of Southern Rajasthan. He also urged for setting up a multi-product Special Economic Zone in this part of the State so that SMEs could showcase their products and strengths to the world and attract fresh overseas investments. |
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From left, Mr. Sunil Agnihotri, Director, FIEO(NR); and Mr. Mr. Ramesh Choudhry, Sr. Vice President, UCCI along with participants. |
Highlighting the growth potential of tourism in and around Udaipur, Mr. Lunawath suggested for opening an export complex in the city where exporters could display their products for tourists from all over the world.
Referring to mining, Mr. Lunawath urged the state government to treat this industry as a basic industry and not as an ancillary industry as per National Mineral Policy, 2008.
Participants suggest
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Rajasthan Government should formulate policies for mining, tourism, export, trade and industry with clarity on tax structure such as VAT, land tax, mandi fee, stamp duty etc. and provide a roadmap for infrastructural facilities like power, water and roads.
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There should be uniformity in VAT structure across the country, as was the logic behind its implementation. VAT rates as well as categorization of products and commodities in Rajasthan should be at par with other states. VAT rates on HSD, petrol, timber, plywood, sunmica, agricultural produce, food items in restaurants etc. should be at 4% in Rajasthan as in Delhi, Punjab, Gujarat and Madhya Pradesh.
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As per the Rajasthan Investment Policy, interest or wage subsidy is given subject to the maximum limit of 50% of VAT deposited by the entrepreneur. Export Oriented Units are deprived of this benefit because they are not depositing any VAT to the Government. The subsidy should be extended to EOUs as well.
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All upcoming industrial areas should have complete infrastructural facilities prior to allotment of land to the entrepreneurs. For developing any industrial area, the Common Effluent Treatment Plant should be treated as basic infrastructural facility.
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Currently, luxury tax is levied on hotels having tariff of more than Rs. 1000 per night. This tax should be rationalized and levied only on the hotels of 3-star and above category, to attract more tourists in budget hotels.
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41st Algiers International Fair
FIEO is participating in 41st Algiers International Fair, scheduled to be held from 7th to 12th June 2008 at Algiers, Algeria.
Product profile:
Product for display includes edibles, industrial or medicinal plants, chemicals, paper & paper products, textile & home furnishings, tools, electrical machinery & equipments, vehicles other than railway or tramway rolling stock, furniture, bedding mattress, toys, games & sports requisites, works or art collectors - pieces & antiques, ceramic products, glass & glassware.
Retail sale is strictly not allowed.
Booth Charges:
Cost of constructed 9 sq mtrs built up booth @ Rs 5,500/- per sq mtrs + 12.36% service tax (without freight) which comes to Rs 55,619/- for 9 sq mtrs. For participation through catalogue show, the cost of sending catalogues upto weight of 2 kgs is Rs 5,000/-
MDA:
Market Development Assistance is available to eligible exporters as per the MDA guidelines.
For clarification/confirmation, please contact: FIEO (Western region), World Trade Centre, Cuffe Parade, Mumbai – 400005 Tel: 022 22183354, 22185093, Fax: 22183875 Email: fieowr@giasbm01.vsnl.net.in |
