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    India Government Helps Exporters Turn Crises Into Opportunities

    2009/1/9 10:47:00 30

    India Exports

    In recent years, India exporters have built their own world in the global market, which is mainly complacent with the good quality of export products in India, timely delivery and competitive price.

    Experts point out that these advantages can be turned into export opportunities.

    For example, in recent years, the quality of India textiles has been recognized by the international market. If the profits of India products are smaller, buyers will still pour into India shopping malls, because India exporters have good reputation in the international market.

    But compared with other products, India is too expensive to attract international buyers.

    The cost of raw materials in India is very high. Under normal circumstances, the cost of raw materials accounts for about 50-60% of the finished product cost.

    In addition to the cost of raw materials, pportation costs and capital costs remain high, which also impedes the development of the textile industry.

    India's cotton price is at least 14-15% higher than the current international market price.

    In addition, the new cotton season has been in the past few months, the government decided to raise the minimum supporting price by 25-40%, resulting in pressure on textile export enterprises.

    Other important raw materials, polyester fiber, also increased by 4% of the special additional duty (SAD).

    Exporters did not get the benefits of using advanced license systems and sourcing raw materials from the global market. In view of the existence of other duties and taxes, the tax rebates paid by exporters decreased.

    Another important cost is pportation cost.

    The central government returns all kinds of taxes to exporters, and exporters can get help if all state governments can refund tax rebates to exporters.

    The cost of working capital is too high, which has also increased the burden on the textile industry.

    If exporters can get us dollar loans at moderate interest rates, exporters will be able to create excellent export performance.

    If the government can take these factors seriously today, it will help exporters overcome this crisis and seize the opportunity to seize the market share of competitors. China and Pakistan are facing their own difficulties and their competitiveness has weakened. Therefore, for India's textile exporters, the crisis can now be turned into opportunities.


     

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