After Prime Minister Narendra Modi pitched India for a 5 trillion-dollar economy, exporters body Federation of Indian Export Organisations (FIEO) has projected that the government’s push in logistics could boost the exports to the mark of 1 trillion-dollar in next three years.
FIEO’s President Ganesh Kumar Gupta said India has huge potential to boost exports of goods and services from the current $535 billion. He said the logistics time, cost and inadequate trade-related infrastructure are impacting the exports. Reduction of logistics costs by 10 per cent will help boost the country’s exports by about 5-8 per cent.
FIEO is a major organization of exporters in India and the projections of FIEO are being seen as major demands of the logistics sector from the Union government prior to the general budget.
With steps like special focus on cutting logistics cost and time, further improvement in ease of doing business, proper implementation of government policies for exporters and timely refund of taxes will help us in touching the mark of USD one trillion exports in the next three years, Gupta said.
He also said that to develop logistics sector in an integrated way, it is important to focus on new technology, improved investment, skilling, removing bottlenecks, improving intermodal transportation, automation, single window system for giving clearances, and simplifying processes. He also stressed on timely refund of taxes such as goods and services tax that could help exporters to deal with the liquidity crunch problem.
There is also a need to focus on the export of GI products and the government should give adequate funds for the marketing of these goods to push their shipments.