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123/A, Miranda City Likaoli Prikano, Dope
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+0989 7876 9865 9
+(090) 8765 86543 85
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123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
Exporters have
pitched for an Indian shipping line of global size and said the Budget FY24
would do well to provide for the initial investments.
It will not only help in
improving India’s export competitiveness, but also save billions of dollars for
the government, Ajay Sahai, DG and CEO of the Federation of Indian Export
Organisation, said.
“This is our most
important recommendation that we have sent to the government that India should
have a shipping line. We have Shipping Corporation of India with a total market
share of not more than 5%, and that is also getting disinvested. I think this is the right time to develop
an Indian shipping line of global size,” Sahai said.
It will also
ensure that India is not at the mercy of foreign shipping lines. According to
Sahai, tax breaks are required to promote private investments in the shipping
industry and cited that many shipping lines across the globe enjoy tax relief.
According to FIEO, in 2021,
Indian exporters incurred expenses to the tune of $84 billion for freight. The figure may
have gone up to $100 billion in 2022. When the target to attain $1
trillion exports will be met, the freight cost remittances will likely be above
$150 billion. “If India will have a shipping line which gets 20-25% of the business,
then we can save $35-40 billion a year,” an exporter said.
During the
pandemic, it was not only the global trade that got impacted but entire world
witnessed a container crunch. Since there were not many companies supplying
these containers the demand went up significantly.
According to
Sahai, there are quite a few players who have got into container manufacturing
already. But the problem is inadequate production of corrugated steel, which is
used in making containers. “The government should take steps to allow its
seamless import or talk to steel companies to produce corrugated steel in
adequate quantity. If there is a
requirement of lesser duties, those demands should be looked into,” he
said.
