Assocham Seeks Sops For Exporters In Foreign Trade Policy

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The Associated Chambers of Commerce and Industry of India or Assocham urged that the exports should not be subjected to minimum alternate tax or MAT, while suggesting a multi-pronged strategy to accelerate India's export competitiveness, media reports said.

Besides, the industry body demanded allocation of incentives for creation of separate births on major ports and substantial reduction in existing freight trade.

Assocham President, Sajjan Jindal, in a paper submitted to the commerce and industry minister Anand Sharma, emphasized the need to extend the subsidies to the crisis-hit Indian exporters by substantially slashing excise and local levies and other export duties in the forthcoming foreign trade policy or FTP that will be unveiled for the next five year on August 27

Export proceeds should not be subjected to MAT, as it amounts to various bureaucratic hassles and encourages unnecessary government intervention and interference in a smooth flow of exports, he added.

The industry lobby further sought the intervention of the Reserve Bank of India or RBI to ease the credit squeeze, adding that the RBI should ensure that commercial banks and other financial institutions give enough credit to exporters. India's exports sector has seen a contraction for nine straight months starting from October 2008.

(Market News Provided by RTTNews)