Free trading of scrips to be game changer: Sharma.

The move to allow usage of export incentive certificates or scrips to source products locally and give export benefits to traders doing transactions online will be game changers, said commerce and industry minister Anand Sharma.

While interacting with senior editors after unveiling a slew of measures to boost exports, commerce minister Sharma said that incentive scrips could be used to pay excise duty on all domestic purchases.

This is the first time that local procurement that translates to imports substitution has been allowed under all schemes against export incentive scrips.

It has apparently been done to encourage local sourcing of products in the present tight economic conditions where demand for goods and services has dipped globally.

Apart from increasing local demand for goods, the decision is intended at saving foreign exchange and creating more jobs.

Further, exports shipped through couriers, post offices and e-commerce platforms will be eligible for export benefits. Hitherto, this benefit was not available.

To start with, this facility will be available for shipments made in Delhi and Mumbai while it is likely to be extended to other cities as well.

Meanwhile, Anand Sharma was confident of achieving $500 billion export target in two years through diversification in markets, products and expanding ‘value-add’ export items.

He conceded that ‘market conditions were tough’ and the idea was to ‘quickly turn around’.

Meanwhile, commerce ministry officials did admit in private that $500 billion exports was not possible in 2013-14 even if exports posted 20 per cent annual growth in next two years.

In 2011-12, exports grew by 20.9 per cent to touch $303 billion while it was $178 billion in 2009-10. On improving investment climate, Anand Sharma said that three – four key reform measures along with lowering of interest rates by RBI would change the perception.

He admitted that for the first time, gross fixed capital formation (GFCF), a prominent indicator of new projects and expansions touched 29 per cent of GDP hinting at firm deceleration investments.

“I firmly believe that a few firm reform measures would change perception and investment climate,” said Anand Sharma.

On burgeoning subsidies bill, Anand Sharma said that subsidy on diesel was not meant for those who drive big diesel cars. “Instead, the subsidies should reach targeted people”, Sharma said.

He also hinted at bringing about consensus on reforms and improving investment climate through discussion with opposition parties and state governments.

Anand Sharma also stated that cabinet would shortly consider foreign direct investments (FDI) in retail sector.

Source : wrd.mydigitalfc.com