Garment exporters here have started openly voicing against the logic of withdrawing any incentive for the sake of satisfying certain norms stipulated by World Trade Organisation (WTO) in the global trade scene.
“Why our government has to think of withdrawing export incentives and subsidies to toe the WTO norms in every aspect. There is no need to cosy up the WTO. Instead, we need to have policies that suit our businessmen and gear them to fight the intensive market penetration by countries like Vietnam, Cambodia and Bangladesh due to the preferential tariff advantages enjoyed by such nations,” said Tirupur Exporters Association president Raja Shanmugam.
He cited the example of the U.S. which follow only selective WTO compliances with the objective of keeping their businessmen’s interests in the front.
The exporters wanted the Centre too to adopt such a stance.
The exporters said they had taken these views and concerns to the notice of the Union Government during the recent direct interaction with Union Minister for Commerce and Industry Suresh Prabhu.
The manufacturers said there was a need to allow the usage of duty credit scrip extended under Merchandise Export from India Scheme (MEIS) for payment of Integrated Goods and Service Tax (IGST) in the case of capital goods and imported inputs.
This will help exporters avoid making upfront payments that impact companies’ cash flow, they said.
Besides, the industrialists were looking for an increase in interest subventions from 3 % to 5 %, among others.