india-map

FIND YOUR MP

Switch to Hindi (हिंदी)
  • MPs & MLAs
    Parliament States
  • Legislatures
    Parliament
    Session Track Parliament Diary Parliament Committees Primer Vital Stats
    States
    Legislature Track Vital Stats
    Discussion Papers
  • Bills & Acts
    Bills Parliament Acts Parliament Bills States State Legislative Briefs Acts States
  • Budgets
    Parliament States Discussion Papers
  • Policy
    Discussion Papers Science & Technology Policy Monthly Policy Reviews Annual Policy Reviews Committee Reports President Address Vital Stats COVID-19
  • LAMP
    About the LAMP Fellowship How to Apply Life at LAMP Videos Meet our Fellows Get in touch
  • Careers

FIND YOUR MP

Parliament States
Session Track Parliament Diary Parliament Committees Primer Vital Stats
Legislature Track Vital Stats
Discussion Papers
Bills Parliament Acts Parliament Bills States State Legislative briefs Acts States
Parliament States Discussion Papers
Discussion Papers Science & Technology Policy Monthly Policy Reviews Annual Policy Reviews Committee Reports President Address Vital Stats COVID-19
About the LAMP Fellowship How to Apply Life at LAMP Videos Meet our Fellows Get in touch
  • Policy
  • Committee Reports
  • Augmenting Infrastructure Facilities to Boost Exports

Policy

  • Discussion Papers
  • Science and Technology Policy
  • Monthly Policy Reviews
  • Annual Policy Reviews
  • Committee Reports
  • President Address
  • Vital Stats
PDF

Augmenting Infrastructure Facilities to Boost Exports

Standing Committee Report Summary

Augmenting Infrastructure Facilities to Boost Exports

  • The Standing Committee on Commerce (Chair: Mr. V. Vijayasai Reddy) submitted its report on the subject ‘Augmenting Infrastructure Facilities to Boost Exports’ on September 11, 2021.  The Committee noted that India has a small share in global exports (2.15%).  It also noted the contraction in Indian exports since 2019-20 (decline of 15.73% in 2020).  Key observations and recommendations made by the Committee include:  
     
  • Logistics:  To enable Indian products to be competitive in the global markets, it recommended: (i) finalising a National Logistics Policy, (ii) standardising packaging guidelines for different categories of cargoes in consultation with the Indian Institute of Packaging, (iii) ensuring timely completion of inspection, testing and certification laboratories at Ahmedabad and Faridabad.
     
  • Export Incentive Schemes:  The committee noted that exporters are facing problems in achieving the threshold value addition of 15% mandated under the Advance Authorisation Scheme and recommended relaxing this criterion.  The scheme allows duty-free import of inputs, which are physically incorporated or used in making export products.   
     
  • The Export Promotion Capital Goods scheme allows the import of capital goods for pre-production, production, and post-production at zero customs duty.  The Committee noted that installation and commissioning of new machinery can take more than a year.  Exporters face hardship due to the requirement of producing an installation certificate within six months from the date of completion of import.  It also noted that exporters are facing difficulty in fulfilling their export obligation as the time period for fulfilling such obligation is counted from the day of issuing authorisation for import of capital goods.  It recommended: (i) counting the beginning of the export obligation period from the date of commissioning of machinery, and (ii) relaxing the time period for submission of installation certificate. 
     
  • Special Economic Zones (SEZs):  The Committee noted that SEZs contribute 20% of India's total exports.  It recommended operationalising all 426 SEZs at the earliest by providing plug and play facilities, along with quality power supply.
     
  • Free Trade Agreements (FTAs):  The Committee noted that Indian exporters are at a disadvantage in the US and European markets due to the absence of FTAs with these countries.  It recommended securing FTAs with our leading trade partners while balancing the interests of the domestic market.
     
  • Railways:  The Committee noted the low share of railways in freight (35%) due to uncompetitive freight rates by Railways, as compared to roads. Noting the 52% increase in rail freight rates since 2011-12, the Committee recommended: (i) providing a distance-based concession to exporters located far away from ports, and (ii) operationalising all sections of the Dedicated Freight Corridor by June 2022, and (iii) exploring monetisation of railway terminals, stations, land assets, multi-functional complexes, and stadiums to ease the burden of cross-subsidization.
     
  • Air Freight:  The Committee observed that no standard rate is available across airports for the processing and handling of cargo at air cargo terminals.   To promote movement for freight by air, the Committee recommended: (i) fixing a standard benchmark for fixing processing and handling globally comparable charges across all airports, and (ii) conducting a study on the benefit of giving the role of regulatory oversight on air freight tariff to the Airports Economic Regulatory Authority.
     
  • Ports Bill:  The Committee recommended that the Ministry of Ports, Shipping and Waterways should ensure that the draft Indian Ports Bill, 2021 does not affect the autonomy of state governments over control of minor ports.  The Bill proposes management and administration of all major ports by Board of Major Port Authority for each port.  It also proposes the management and administration of non-major ports by State Maritime Boards in each state/ Union Territory.   The report said that inputs of the states should be examined and incorporated in the draft Bill.
     
  • Roads:  The Committee observed that only 17% of the projects have been completed under the Bharatmala Pariyojana.  Moreover, only 54% of the projects have been approved even after the implementation of the projects for nearly five years.  It recommended real-time monitoring of projects along with prompt identification and resolution of issues that caused the delay. The Committee noted that 152 projects under the Ministry of Road Transport have been delayed.

 

 DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.

Follow Us

Creative Commons License

PRS Legislative Research is licensed under a Creative Commons Attribution 4.0 International License

Disclaimer: This data is being furnished to you for your information. PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that this information is accurate or complete. PRS is an independent, not-for-profit group. This data has been collated without regard to the objectives or opinions of those who may receive it.

  • About Us
  • Careers
Copyright © 2023    prsindia.org    All Rights Reserved.