Thaindian News

Bangalore, Sep 10 (IANS) The government is taking proactive measures to lower transaction costs and upgrade infrastructure to make Indian exports competitive, Commerce and Industry Minister Anand Sharma said Friday.
“Creating an enabling environment, lowering transaction costs and upgrading port infrastructure remain the corner stone of a successful export promotion strategy and we will do everything possible to give our exporters the competitive edge,” Sharma said at an event organised by the Engineering Export Promotion Council (EEPC) here.

He said exports grew 32 percent in the first quarter of fiscal 2010-11 despite difficult times in the global economy.

India targets to increase its exports to $200 billion in the current fiscal.

Sharma called for value creation in Indian products, especially engineering goods.

“Indian engineering products reach almost 200 countries but many of these items are low valued-added products. We must therefore, move up the value chain and be able to command a price that reflects the inherent strengths of our products,” Sharma added.

Exports of engineering products fell sharply in fiscal 2009-10.

EEPC Chairman Aman Chadha stressed the need for favourable export regulations for the sector, which accounts for over 20 percent of India’s total exports.

Chadha said a slowdown in engineering industry and exports would not only affect industrial investment and growth but also employment. He urged the government to address the issue of tax deduction at source for foreign agency commission paid by exporters.