Highlighting the concern over constant increase in export credit rate over last one year, Mr Ramu S.Deora, at the FIEO Interactive Session in Chennai, said that Indian exporters are competing with countries where credit rates are below 5%. Base rate of Indian Banks have moved up between 2% to 2.50% in last 7-8 months pushing up export credit.

On the contrary, Interest subvention for exports has been withdrawn from 1st April 2011. Thus, cost of export finance which was 7%in July 2010 has now moved up between 11% to 11.5%, a whopping increase between 57-64%.Therefore, Mr Deora urged the Commerce & Industry Minister to prevail upon the Government to maintain distinction between exports and domestic finance and provide export credit to MSME Sector at 7% and others at 9% to maintain export momentum.

President FIEO also suggested host of measures to reduce transaction cost of exports which ranges between 7-10% of exports value . He referred to long delay which takes place in ratifying the Norms for Advance Authorization issued under Paragraph 4.7 on self declaration basis where SION does not exist.

President FIEO raised concern on the delays and paperwork involved in closure of advance autorisation at DGFT and same procedure should be followed at Customs.

FIEO President asked the Government to implement full EDI connectivity amongst the agencies involved in Import/ Exports for a seamless movement of cargo which can only help in reducing transaction time and cost to a large extent.

He said that he will review the delays in imposition of provisional anti dumping duty so that the same can be imposed in reasonable time compared with best practices.

For providing commercial information to Indian exporter, Mr Sharma agreed to strengthen commercial Missions abroad and open more such missions.

Mr Sharma said that new manufacturing policy shall be announced shortly aiming to increase share of manufacturing in GDP from 16% to 25%.