Focus on trade infra, MSMEs to help India double share in global trade: Confederation of Indian Industry (CII)

India's share in global trade, currently at 2%, can more than double with deeper integration into global value chains, improved digital trade infrastructure, and a stronger focus on enhancing the competitiveness of micro, small, and medium enterprises (MSMEs), according to the Confederation of Indian Industry (CII). Chairperson of CII's National Committee on EXIM, Mr. Sanjay Budhia, emphasised the need for collaboration with the government to address challenges limiting manufacturing and export growth. He highlighted the importance of creating a common online portal for circulars related to ports and locations, as well as adopting best practices from developed nations to reduce global trade costs.

He also stressed the significance of implementing the Customs Authority on Advance Ruling (CAARR) Regulation, 2021, ensuring more predictable duty liabilities. Strengthening the Authorised Economic Operator (AEO) programme was identified as crucial in boosting exporters’ confidence by reducing delays. To simplify processes further, he recommended that refunds, where there is no dispute between the department and the importer, should be processed without requiring an appeal. He pointed out that aligning India's tax system with global standards has enhanced the ease of doing business, particularly with trading partners like the European Union and ASEAN, who share similar VAT-based structures, facilitating smoother cross-border transactions.

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