As representatives of India’s export community met with Finance Minister Nirmala Sitharaman ahead of the upcoming Union Budget, calls were made to develop the country’s shipping capabilities as well as lower import taxes on gold and other precious metals.
Industry group Federation of Indian Export Organisations, in their discussions, emphasized the need for India to establish globally competitive shipping lines that can reduce dependence on costly foreign carriers. They noted that outbound freight costs have been rising sharply, eating into export competitiveness. With goods shipments expected to keep climbing in the coming years, having a robust domestic shipping sector could save billions of dollars annually.
Others at the meeting, including officials from the gems and jewelry sector, asked the government to lower import duties on gold, silver and platinum. They explained thatIndia’s ornaments industry is heavily reliant on overseas supplies of these precious materials. However, the current tariffs lead to increased working capital requirements. Cutting these duties would provide a boost to jewellery exports, while also sustaining millions of domestic jobs.
Export groups also reiterated calls to extend the Interest Equalization Scheme and restore higher subsidy rates for sectors. Further support was sought for research activities through enhanced tax deductions. The recommendations come at a time when sluggish global demand has impacted India’s exports growth over the past year. It remains to be seen how the government will address these concerns in its upcoming Budget announcements.
