Union Budget 2019: Address liquidity, incentivise manufacturing to boost exports, says trade body

New Delhi: A string of measures, including adequate availability of liquidity and incentivising manufacturing, should be included in the forthcoming Budget to boost exports, Trade Promotion Council of India said on Thursday. “The government needs to address liquidity and manufacturing constraints by increasing the lending cap of the nationalised banks for credit financing and ensure adequate liquidity. Private players including NBFCs may also be allowed,” TPCI Chairman Mohit Singla said in a statement. [caption id=“attachment_3006206” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] He said focus on agri-exports and food processing can take India to the position it has been aspiring for long. Singla said the forthcoming Budget must address supply constraints to make the export industry competitive. “Incentives may be given to lead firms in ancillary manufacturing to create an ecosystem from where domestic manufacturing can take place,” he said adding tax holiday of at least five years may be given for investors in infra and logistics sectors. The chairman also suggested that incentives be given to companies investing in organic farming including horticulture. “The corporate tax was announced to be reduced to 25 percent in 2015, today it is 30 percent (for companies with annual turnover of Rs 250 crore). The corporate tax reduction of 5 percent may be extended to all entities irrespective of the cap. This will also help attract FDI to India,” he added. The country’s exports grew 9 percent to $331 billion in 2018-19. The Budget is scheduled to be presented on 5 July. Follow full coverage of Union Budget 2019-20 here