EEPC India proposes guidelines for Rupee trade with Russia

New Delhi: EEPC India on Tuesday proposed cheaper export finance for MSMEs and guidelines for Rupee trade with Russia in the Board of Trade meeting chaired by Union Commerce Minister Piyush Goyal here.
EEPC India Chairman Mahesh Desai also proposed to withdraw export duty on selected steel items as it will be especially helpful for the MSMEs which have a significant contribution in India’s engineering exports, an official statement said.
Cheaper advances for MSMEs, a dedicated PLI scheme for MSME sector, guidelines for Rupee trade with Russia and alternative payment mechanism for Myanmar were some of the key suggestions by EEPC India during the meeting of the Board of Trade held today.
Desai also proposed to withdraw export duty on selected steel items as it will be especially helpful for the MSMEs which have a significant contribution in India’s engineering exports.
He cited the feedback received from member exporters and noted that imposition of export duty will dampen Indian interest and endanger the survival of Indian stainless-steel “SS” producers.
He requested the government to relook at the rates under RoDTEP and give full rebate on the taxes that still remain in the export production chain. Mr. Desai recommended including steel sector under RoDTEP as steel is the most widely used raw material in the engineering industry.
Desai highlighted that when export incentives are being phased out, export finance has become increasingly important, especially for the MSMEs.
The EEPC India Chairman suggested that MSMEs should be offered advances at a rate that would be lower than MCLR (Marginal Cost of Funds Based Lending Rate) and RLLR (Repo Linked Loan Rate) so that they don’t run out of funds and can sustain business.
While appreciating the steps taken by RBI for facilitating Rupee-trade with Russia, Desai called for sensitizing the banks regarding the process. He suggested that a clear set of guidelines in this regard would be of immense help for export.
Board of Trade (BOT), constituted by merging Council for Trade Development and Promotion with Board of Trade, advises the government on policy measures connected with the foreign trade policy in order to achieve the objectives of boosting India’s trade.
The meeting was attended by Various State Ministers and other senior officials of key line ministries and States, all major trade and industry bodies, Export Promotion Councils and industry associations. (UNI)