Export needs less red-tape, tariffs need overhaul
The survey has called for a proper tax and tariff structure for exports and infrastructure projects, and the setting up of innovative finance models. HT reports.india Updated: Feb 27, 2013 22:02 IST
The survey has called for a proper tax and tariff structure for exports and infrastructure projects, and the setting up of innovative finance models.
India's export growth, which was continuously negative since May 2012, turned positive with a growth of 0.82% in January.
The survey says many micro, port-specific and sector-specific issues related to infrastructure, trade facilitation, tax and tariffs and credit need attention. "Addressing these issues… can exponentially promote India's export growth," it said.
It drew attention to the fact that finished jewellery imported from Thailand is cheaper than raw gold available in India, and called for a review of the inverted duty structure under the India-Thailand FTA.
The survey said a proposal is being put in place for providing 100% government funding to road developers to rescue the highways sector, where there is a severe equity crunch. It also suggested easing exit norms for developers: "In current market conditions, these firms are unable to raise new equity.
Exit route needs to be eased so that promoters can sell equity positions after construction, passing on all benefits and responsibilities to entities that step in."