Ludhiana-based exporters are urging the Centre to increase the incentives received on exports, as a result of tough competition from their international counterparts. The businessmen argue that as a result of tough competition, they are currently surviving on thin margins and that this move will help them boost exports and benefit the economy.
These Ludhiana-based businessmen have said that the industrial city has a huge potential for exports and this will only benefit if international trade is made more attractive if the existing incentives were hiked.
Rohit Gupta, president of Importer Exporter Club of Punjab said, “In wake of our shrinking profit margins due to the rising expenditures on account of hike in charges for labour, freight and raw material, we are facing a very tough time. At this moment we are avoiding increasing the rates of our products for our international customers, but it does not seems possible for us to keep working at the same rates for too long.”
Gupta demanded an increase to the duty drawback to atleast 3 per cent for the exporters, regardless of the nature of the goods in question and asked the Union government to support the industry.
Harish Kairpal, a city-based garment exporter and president of Ludhiana MSME Association said, “Indian exporters are facing tough competition from other nations, especially the neighbouring countries because the rate of incentives being offered by their governments is more than double than here. Despite this edge to them, we are still managing to do business but it is not possible to work on such thin margins forever. In case we increase the rates of our products, we risk losing the orders and therefore the best alternative is financial support from the Centre to the exporters.”
Former president of Small Scale Manufacturers’ Association at Daba Road, Amarjit Singh Chauhan said, “Ludhiana’s industry, especially the auto parts, sewing machine, bicycle, hand tools and garment industry, has a huge export potential.”
Due to a low rate of incentives, he added that only a few of the coty’s MSMEs have been able to export their goods and asked the Centre to hence increase them to double for at least a period of two years on an experimental basis.
