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Monday, 20 December 2021

‘India should develop an Indian shipping line of global repute’: FIEO

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As industry’s pre-budget meeting with Finance Minister Niramala Sitharaman has started taking place, industry leaders and trade bodies have highlighted key challenges affecting business.

In such a meeting, Dr. A. Sakthivel, President, Federation of Indian Export Organisations (FIEO), insisted to develop an Indian shipping line of global repute. The export sector is also facing the rising freight cost and dependence on global shipping companies.

He said, “India’s outward remittance on account of transport services is increasing year after year. We remitted around US $65 billion as transport services in 2020, and looking into the abnormal increases in freight in 2021, the figure is likely to cross US $100 billion. When we are looking at increasing our international trade to US $2 trillion in an economy of US $5 trillion, the outgo on transport services will increase to US $150-200 billion. Since the Shipping Corporation of India is being disinvested, we need to encourage large Indian entities to build an Indian shipping line of global repute.”

He further added that such shipping lines, even if it gets 25 per cent of the total business, can save US $30-US $40 billion annually, and will also reduce our dependence on foreign shipping lines and their dictates. The tax advantage availed by shipping lines in some countries may be considered to encourage them to register such ships in India.

Indian exporters are facing acute shortage of containers so container manufacturing is also required in India. “Container manufacturing requires a special kind of steel which provides a competitive edge to China that manufactures over 80 per cent of global containers. We need to encourage domestic manufacturing of containers by providing fiscal benefits, which is required as we are looking atUS $1 trillion exports in the next five years,” he said.  As of now, around 80 per cent of the world’s containers are manufactured in China so FIEO also called on the Government to provide fiscal benefits to container manufacturing in India.

Source : https://in.apparelresources.com/
 
    
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