The budget proposal to earmark funds for outer harbour projects, if implemented in letter and spirit, can propel growth in exports from the current financial year itself, said Walter D'Souza, Chairman (Southern Region), Federation of Indian Export Organisations (FIEO).
Reacting to the Union Budget 2014-15, he said one of the most crucial impediments faced by Indian exporters has been the high transaction costs as compared to their peers abroad, which has been mainly due to poor infrastructure.
If not world-class, at least reasonably good infrastructure without many bottlenecks for seamless surface and sea transportation is vital for the growth of the country’s foreign trade.
The budget has made an effort to address these issues to a certain extent. The rate of success will depend on the urgency and pace at which implementation will be carried out, he said.
It has become imperative for emerging economies to adopt measures to change fundamentals, facilitate external adjustments, and streamline monetary policy by having in place result-oriented structural reforms. The budget has made earnest efforts in this direction, D’Souza said.
However, it is disheartening to note that the industry plea for exemption of service tax on all export-related transactions has not been heeded. It can have a negative impact on export growth, he added.