Govt to launch TIES to fund export infrastructure

Govt to launch TIES to fund export infrastructure A new scheme will be launched in 2017-18 to create infrastructure for exports, a move aimed at reducing transaction (सौदा) costs for traders. "A new and restructured (पुनर्गठन) central scheme with a focus on export infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18," Finance Minister Arun

Jaitley said in his Budget speech. Indian exporters face huge challenges in terms of infrastructure, particularly in states. Inadequate (अपर्याप्त) infrastructure pushes their transactions costs, impacting(प्रभावित कर) competitiveness (प्रतिस्पर्धा) of Indian goods in the global markets. Exporters body Federation of Indian Export Organisations (FIEO) said the scheme will help create modern infrastructure like last mile connectivity to ports, testing labs and certification centres.

"This is a welcome move. The scheme will help in modernising infrastructure in states for exporters," FIEO DG Ajay Sahai said.

Commerce and Industry Minister Nirmala Sitharaman had in January informed about TIES and stated that it would aim at funding export infrastructure in states.

The issue was discussed during the meeting of the Council for Trade Development and Promotion in January.

Announcement about TIES assumes significance as the "Assistance to States for Development of Export Infrastructure and Allied (सम्बद्ध)Activities (ASIDE) Scheme" was shifted to states on the recommendations of the 14th Finance Commission.

ASIDE provides for an outlay for development of export infrastructure in states.

After this shift, states came back in 2016 and urged the Centre to take care of creating infrastructure for exports, Sitharaman had said.

She had stated that all the pending or incomplete projects will have to be undertaken by states.

Recording positive growth for the fourth month in a row, India's exports rose by 5.72 per cent to $23.9 billion in December on better performance by petroleum, engineering and pharmaceuticals segments.