MSME Ministry for tax relief measures in FTP for MSMEs.

NEW DELHI: The MSME Ministry has suggested incorporation of tax relief measures in the Foreign Trade Policy 2014-19 to boost exports of micro, small and medium sector enterprises.

"We are trying to promote MSMEs and remove difficulties they face so that exports from MSMEs can be enhanced. There are a number of suggestions...connected with duty structures, inverted duties etc," Micro, Small and Medium Enterprises (MSME) Secretary Madhav Lal said when asked about the Ministry's suggestions about FTP.

When the custom duty on raw materials is higher than on finished products it is referred as inverted duty structure.

The Commerce Ministry has initiated the process for formulating the foreign trade policy (FTP) for 2014-19 which will be unveiled by the new government. The current policy provided fiscal incentives including interest subsidy and other duty neutralisation schemes.

The new policy will include a long and medium term strategy to enhance trade competitiveness and overall growth of India's foreign commerce.

India's exports are expected to touch USD 325 billion in the current fiscal.

The MSME sector contributes about 40 per cent to the country's total exports and over 8 per cent to India's GDP.

Lal was speaking on the sidelines of inauguration ceremony of Khadi Gramodyog Bhawan here.

The refurbished Bhawan was inaugurated MSME Minister K H Muniyappa.

"This is a flagship store of the Khadi Gramodyog and it has been inaugurated today after extensive renovation. The floor space has been increased to 20,000 square feet from 14,000 square feet. We aim to triple its turnover to Rs 100 crore from Rs 32 crore," Lal said.

Muniappa spoke about the MSME Ministry's initiative to distribute one lakh spinning wheels or charkhas to spinners and weavers under the Khadi Reforms and Development Programme at the Khadi Exhibition in Karnataka on March 2.

Source : economictimes.indiatimes.com