)
Ahead of the interim Budget 2024, exporters in India are urging the government to allocate substantial funds for key schemes aimed at boosting exports and achieving the ambitious $2 trillion target by 2030.
Market Access Initiative (MAI) Scheme
- Request for Funds: Exporters are urging the government to allocate $3.88 billion for the Market Access Initiative (MAI) scheme in the upcoming budget.
- Inadequate Allocation: The Federation of Indian Export Organisations (FIEO) deems the current allocation of less than Rs 2 billion for the MAI scheme to be grossly inadequate for the goal of promoting exports worth $2 trillion.
- Scheme Objective: The MAI scheme aims to promote India’s exports on a sustained basis, employing a ‘focus product-focus country’ approach through market studies and surveys.
District as an Export Hub (DEH) Scheme
- Financial Outlay Request: FIEO is urging the government for a financial outlay of Rs 5,000 crore, to be shared between the Centre and states, for the District as an Export Hub (DEH) scheme.
- Game Changer: FIEO believes that a planned scheme addressing infrastructure gaps through central-state funding can be a game-changer, fostering exponential growth in exports from districts and boosting states’ exports.
Focus on Marketing and Support for Small Exporters
- Aggressive Marketing Requirement: To achieve the target of $2 trillion exports by 2030, FIEO emphasizes the need for an aggressive marketing strategy and suggests creating a corpus of at least 0.5% of the preceding year’s exports for the MAI scheme.
- Benefit for Small Exporters: A focus on marketing, supported by the government, is expected to particularly benefit small exporters.
Other Export-Related Requests
- Encouraging Investment: Exporters are urging the government to encourage more investment in the manufacturing sector and exports in the upcoming Budget.
- Sunset Date Extension: Request to extend the sunset date for commencing manufacturing from March 31, 2024, to March 31, 2027, for companies availing a 15% concessional income tax rate.
- Indian Shipping Line Development: The government is urged to focus on developing an Indian Shipping Line of global repute.
Apparel Industry’s Specific Request
- Interest Equalization Scheme: The Apparel Export Promotion Council (AEPC) requests an increase in interest equalization rates to 5% for all exporters under the scheme.
- Competitiveness Boost: AEPC believes that increasing interest equalization rates will enhance the competitiveness of the apparel industry in the international market and facilitate access to necessary working capital.
Multiple Choice Questions (MCQs)
- What amount are exporters urging the government to allocate for the Market Access Initiative (MAI) scheme?
a) $2 billion
b) $3.88 billion
c) $5 billion
d) $1.5 billion
Answer: b) $3.88 billion - What is the objective of the MAI scheme?
a) Boosting domestic manufacturing
b) Promoting sustainable agriculture
c) Facilitating international exports
d) Enhancing technological innovation
Answer: c) Facilitating international exports - How much financial outlay is FIEO urging the government for the District as an Export Hub (DEH) scheme?
a) Rs 2,000 crore
b) Rs 5,000 crore
c) Rs 3,500 crore
d) Rs 7,500 crore
Answer: b) Rs 5,000 crore - What is the suggested corpus for the MAI scheme to support aggressive marketing?
a) 1% of the preceding year’s exports
b) 0.5% of the preceding year’s exports
c) 2% of the preceding year’s exports
d) Fixed amount of Rs 1 billion
Answer: b) 0.5% of the preceding year’s exports - What is the specific request from the Apparel Export Promotion Council (AEPC) regarding the Interest Equalization Scheme?
a) Reduction in interest rates
b) Extension of scheme duration
c) Increase in interest equalization rates
d) Removal of the scheme
Answer: c) Increase in interest equalization rates