CIM to focus on boosting exports and SEZ revival

Commerce ministry will ask for export credit to qualify as the priority sector to boost exports

The Dollar Business Bureau

To boost exports, which are declining since December 2014, the Ministry of Commerce and Industry will ask for export credit to qualify as the priority sector and want to emphasise on the special economic zones (SEZs) revival, as the Ministry found six areas to support the exports in goods.

The discussion took place during the first meeting of reconstituted Board of Trade, a top advisory board on trade, re-formed as per the provisions of the Foreign Trade Policy (FTP) for 2015-20. In the meeting, chaired by Nirmala Sitharaman, Minister of State for Commerce and Industry, it has been decided to put greater emphasis on encouraging exports by small and medium enterprises (SMEs), involving embassies and missions to enhance trade.

Besides, promoting exports of organic items, the Ministry will try to resolve the issues of the EXIM Bank and Export Credit Guarantee Corporation (ECGC) in order to facilitate easy availability of credit.

The commerce minister said the government would work to improving the capability of SEZs and make business simpler in these zones as SEZ’s have huge banks of land available with them.

She said that the commerce department will also take up with RBI and Finance Ministry, the issues being faced by EXIM Bank and the ECGC with regard to flexibility of finance.
The 70-member Board of Trade meeting was attended by several industry leaders including: Chanda Kochhar, MD, ICICI Bank; Kiran Mazumdar-Shaw, MD, Biocon, Satish Reddy, Chairman, Dr Reddy's Laboratories; and, Venu Srinivasan, Chairman, TVS Motor Company.