The Federation of Indian Export Organisations (FIEO) has suggested the commerce ministry to set up a committee to evaluate the country's import trends and encourage domestic production of such products to reduce the widening trade deficit.
The issue was raised by FIEO Chairman A Sakthivel during a meeting, chaired by Commerce and Industry Minister Piyush Goyal, on April 20. The target for services and certain goods sector was discussed during that meeting. "In view of increasing trade deficit and surge in imports, a committee may be formed to evaluate the trend in imports and encourage domestic production of such products to reduce the increasing deficits," Sakthivel said. He also recommended the ministry to come out with a revised Transport and Marketing Assistance (TMA) scheme for exporters. It ended last month. The withdrawal of the scheme has come as a setback for Agri exporters and a lot of them are small businesses, he said.
"We, therefore, request that the revised TMA Scheme may be rolled in expeditiously and may cover exports from April 1, 2021, as many exporters have factored the freight benefits while finalising the contracts," he added. The Services Export Promotion Council (SEPC) too participated in the meeting where the export target for the sector was discussed. According to the council, services exports may touch USD USD 350 billion during the current fiscal. Abhay Sinha - Director-General, Service Export Promotion Council (SEPC) - said the target has been revised from USD 300 billion to USD 350 billion for 2022-23.
"Target is set in consideration to the sectors which couldn't perform in the last two years due to the pandemic and hopefully will bounce back in FY23 like Travel and Tourism, Hospitality, Education and Entertainment. Besides that, there are certain sectors that will be focused upon in FY23 are market research, consulting, engineering and construction," he said. In 2021-22, services exports touched USD 250 billion.