Ludhiana: Exporters have urged the Central govt to substantially increase export incentives, claiming existing benefits are negligible and inadequate to offset rising production and logistics costs. Industry bodies highlighted that businesses are currently struggling with high power tariffs, interest rates, and compliance expenses, making it difficult to compete with countries that provide more aggressive state support.Badish Jindal, president of the World MSME Forum, stated that current incentives are too small to make a meaningful impact, particularly for micro, small, and medium enterprises. He argued that if India aims to enhance its global competitiveness, policy support must be aligned with the actual costs of input prices and transportation. Without this adjustment, he warned, it will remain extremely difficult for smaller firms to sustain their operations.
SC Ralhan, president of the Federation of Indian Export Organisations, emphasised the need for export loans at lower interest rates. He noted that access to affordable credit is essential for Indian exporters to stand at par with international competitors. Industry leaders pointed out that while schemes like duty drawback and RoDTEP were designed to neutralize taxes, the actual rates for many products remain too low to provide real relief.Exporter Sarabjit Singh described the current benefits as “paltry,” noting that in the steel sector, a duty drawback of Rs 1.5 per kg does not even cover the cost of a single truck’s transportation. He suggested that the government should consider reintroducing tax-free export benefits for MSMEs to encourage new firms to enter the market.Beyond higher rates, the industry is also calling for the timely disbursement of incentives. Faster processing is seen as vital for improving cash flow for MSMEs, which often operate on thin margins and cannot afford long delays in receiving government support.
