As though Indian exporters didn't have enough on their plate with the global shipping container crisis dampening foreign trade, the community is now facing delays in shipment due to traffic in the Suez Canal. This is the consequence of a huge container ship that got stuck in the waterways earlier this week. Experts feel it may take some time for the situation to resolve and that it is too early to gauge the impact of the mishap on exports, in the long run.
Exporters can expect an added hindrance in the rollout of subsidy rates under Remission of Duties and Taxes on Exported Products (RoDTEP) after the Commerce Secretary Anoop Wadhawan claimed that the government is facing teething issues pertaining to the scheme.
Moreover, all eyes are on the upcoming Foreign Trade Policy (FTP) that promises to focus more on the MSME sector. We are hopeful that the government addresses the long-term woes of this highly unorganized sector.
Trade Update
28TH MARCH
# 108
The central government is devising a mechanism to step up screening imports to protect domestic manufacturers. The details of the online monitoring system may find mention in the foreign trade policy 2021-26, which will kick in next month.
The global trading community woke up to a literal 'bottleneck' on Tuesday morning. A 400-meter container ship weighing 200,000 metric tons got stuck in the Suez Canal, bringing the regional shipping supplies to a sudden halt.
A few 'teething troubles' are holding up the government from notifying the tax refund rates for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, Commerce Secretary Anup Wadhwan has said. Addressing a press briefing on March 22, Wadhawan however stressed that exporters already broadly know what to expect from the scheme.
Technology for MSMEs: While in this year’s budget proposal, the government has made a few positive steps in helping small businesses with extending capital gains and exemptions, there are more measures that the government can focus on providing to help SMBs reach their maximum potential.
China’s interest in Indian rice and black tea is on the rise. It has started importing basmati rice from India and though the volumes are not huge in this financial year, the business is expected to grow in 2021-22, said industry executives.