In the forthcoming Budget, exporters have
sought support  from the government to promote the growth of the country’s
outbound shipments. Exporters demanded enhanced allocations for the RoDTEP
scheme, high import duty on plastic finished goods, setting up of an Indian
shipping line, and reinstating exemption for duty-free import of critical
inputs for leather products.

They have also suggested financial incentives
to address logistics challenges, and reduction of income tax on partnerships
and LLPs to support MSME players.

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According to the
Federation of Indian Export Organisations (FIEO), there is a need to encourage
large Indian entities to build an Indian shipping line of global repute as it
would help reduce dependence on foreign shipping lines.

Due to its dependence on
global shipping companies and rising freight cost, the export sector is facing
major issues.

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FIEO Director-General Ajay Sahai said,
“Overseas marketing is a big challenge for exporters, more so for MSMEs,
as it entails a high cost. We need to bring the Double Tax Deduction Scheme for
Internationalizations to allow exporters to deduct against their taxable
income… A ceiling of USD 5 lakh may be put under the scheme so that the
investment and tax deduction are limited”.

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Mumbai-based exporter and Chairman of
Technocraft Industries Sharda Kumar Saraf said that the finance minister should
provide a suitable budget for Reimbursement of Duties & Taxes on Export
production (RoDTEP).

He said that RoDTEP is
one of the most important tools to support export marketing, but its present
budget of about Rs 40,000 crore is not sufficient.

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Plastics Export Promotion
Council of India (Plexconcil) Chairman Arvind Goenka suggested that the import
duty on plastic finished goods should be at least 5% higher than polymer raw
materials.

“For instance, import duty on PVC resin
is 10% and that on value-added PVC goods is also 10%, thereby there is no
incentive to boost domestic production,” Goenka said.

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Council for Leather
Exports (CLE) Chairman Sanjay Leekha suggested reinstatement of the exemption
for duty-free import of critical inputs for leather garments and footwear. He
also recommended the extension of the basic customs duty exemption for the
import of lining and interlining materials.

According to Leekha,
apart from boosting exports these measures will promote value addition within
the country and make domestic products competitive in the global markets.

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He has also suggested reinstatement of basic
customs duty on import of wet blue, crust, and finished leather as the
exemption was removed last year.

Chairman of Farida Group Rafeeq Ahmed said
that steps for the labour-intensive sector in the budget will help in
creating more jobs and increasing exports.