Ludhiana exporters seek more incentives from Center

Faced with stiff competition from their international counterparts, city exporters have now called on the center to increase incentives for exports. The businessmen believe that this will help them boost exports from the city and country as they are currently surviving on low margins due to fierce competition.

Ludhiana businessmen say the industrial city has huge export potential and this could only be realized if international trade is made more attractive by expanding existing incentives.

Rohit Gupta, President of the Importer Exporter Club of Punjab said: “Following our shrinking profit margins due to rising expenses due to the increase in the cost of labour, freight and raw materials, we are facing a very difficult period. At the moment we avoid increasing the tariffs of our products for our international customers, but it doesn’t seem possible for us to work with the same tariffs for too long.”

Gupta called on the Union government to expand its support for the industry and called for increasing duty drawback for exporters to at least 3%, regardless of the type of goods.

Businessmen also regret that the incentives provided in our neighboring countries are more than this.

Harish Kairpal, a city-based garment exporter and President of the Ludhiana MSME Associationc, said: “Indian exporters face stiff competition from other nations, especially neighboring countries, as the incentives offered by their governments are more than double those here . Despite this lead, we still manage to do business, but it’s not possible to work with such thin margins forever. If we raise the prices of our products, we risk losing orders, so the best alternative is financial support from the center for exporters.”

Amarjit Singh Chauhan, former President of the Small Scale Manufacturers’ Association on Daba Road, said: “Ludhiana’s industry, particularly the auto parts, sewing machine, bicycle, hand tool and garment industries, has tremendous export potential.”

He added that few of the city’s MSMEs were able to export their goods due to low incentives, and urged the center to therefore try doubling them for at least a two-year period.

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