HANDICRAFT EXPORTS MAY TOUCH Rs.
7800 CRORE THIS YEAR
EXPORTERS
URGE FULL EXEMPTION FROM VAT
44TH
ANNUAL MEET OF HANDICRAFTS EXPORTERS ASSOCIATION
Exports of handicrafts are
likely to touch of Rs. 7800 crore during 2002-03, surpassing the
target of around Rs. 7500 crore set for the year. Handicrafts
exports have increased to record levels over the past decade from
a meagre Rs. 387 crore in 1986-87 to Rs. 6769 crore during 2001-02.
This was indicated at the 44th annual celebrations
of the Handicrafts Exporters Association of India, here last night.
Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry,
was the Chief Guest at the function. Shri Rudy said that handicrafts
sector had been a thrust area of India’s exports. Shri J. Vasudevan,
Chairman & Managing Director, India Trade Promotion Organisation
(ITPO) who was also present said that amongst the ITPO trade fairs,
the most successful ones related to handicrafts and textiles and
added that the recent Handicrafts and Gifts Fair had generated
business worth Rs. 800 crore. The government’s liberal policy
in recent years has given a major thrust to handicrafts exports
and extra weightage has been given to exports of handicrafts for
the purpose of qualifying for recognition as Export Houses, Trading
Houses, Star Trading Houses and Super Star Trading Houses.
The Chairman of the Association,
Mr. C. Ranjit Rai, urged that the handicraft exporters be completely
exempted from VAT. Expressing concern over reports that exporters
may have to pay VAT before hand to be refunded later, he said
that no exporter has such high margin that he pays the tax and
then runs around for refund and suggested that some system be
worked out right in the beginning so that VAT would not be payable
by exporters on purchase of the raw materials. The Association
also urged that income tax benefits on the lines of benefits being
extended to Export Oriented Units (EOUs) and Special Economic
Zones (SEZs) be given to other exporters also, especially the
handicraft and the textile sector which was heavily employment
oriented.
Some of the other suggestions
made by the Association to enable rapid growth of handicraft sector
included investment to improve infrastructure in the country such
as power and transportation including road transport as well as
railways and seaports; reform of labour laws; and simplified system
for fixing of DEPB rates. It was mentioned that the Association
had been attending Public Grievances Committee Meeting at the
Delhi Customs to bring to the notice of the Customs authorities
matters of importance for handicrafts exports and suggested introduction
of EDI system in Customs houses.
