Press Information Bureau

Government of India

Ministry of Commerce & Industry

27-January-2012 14:37 IST

Transaction Costs Reduction Yields US $ 450 millions to Exporters: Shri Scindia Addresses Leaders at W E F on Future of South Asia

Shri Jyotiraditya M. Scindia, Minister of State for Commerce & Industry, chaired two Panel discussions at the Annual Meeting of the World Economic Forum at Davos on 26th January 2012. Speaking at the panel Shri Scindia said, “How can the manufacturing sector transform growth and employment”. He observed the unique growth model of India which believes in equitable and inclusive growth. Giving examples on initiatives of Government of India: such as creation of National Skill Development Mission, National Manufacturing Policy, DMIDC, etc. he emphasized that goal of India should not only to be to prepare for providing talented and skilled work Force for its own needs but also to be the Human resource basket for the world. He also mentioned that the National Investment and Manufacturing zones envisaged under the national manufacturing policy will be the green field infrastructure townships, benchmarked with the best manufacturing hubs in the world. Indian Minister mentioned that for enhancing the trade performance of Industries, a strong initiative to reduce the transaction costs has been undertaken by the Ministry of Commerce which has resulted in bringing down the transaction costs for the exporters by about $ 450 millions. Due to its policy liberalization, India has become one of the most attractive destinations for foreign trade investment.

Chairing another discussion panel on “Future of South Asia” at the World Economic Forum, Mr. Scindia emphasized that economic growth and political stability are deeply inter-connected and demographic governance, by ensuring efficient delivery of public goods and justice lie at the core of political and economic stability. He mentioned that liberalization in India is inextricably linked to sustainable and inclusive growth and has helped the business and regulatory environment to successful move towards greater transparency and efficiency.

Shri Scindia mentioned that the government of India has launched ambitious programmes such as ‘Bharat Nirman’, ‘NREGA’, ‘JNURM’ etc to empower the poor and to provide good quality infrastructure to urban and rural population. Speaking on the India’s demographic dividend, he emphasized the fact that India is presently among the world’s youngest nations with a median age of 25 years. He also mentioned that we in India have to improve profitability in the agricultural value chain and also move people away from agriculture to manufacturing and service sector. Speaking about the economic integration of South Asia, Shri Scindia mentioned that a dynamic and outward looking, South Asia can bring huge benefits not only to the region but also to the world.

****

DS/GK

Transaction cost reduction boosts exporters' competitiveness through commerce ministry reforms and national manufacturing and skill measures A Commerce Ministry policy to reduce transaction costs for exporters operates by lowering compliance burdens and procedural frictions, thereby improving export competitiveness and strengthening India's attractiveness for foreign trade investment. This reform is presented alongside enabling instruments-the National Manufacturing Policy, National Investment and Manufacturing Zones, and the National Skill Development Mission-designed to provide infrastructure and skilled labour, supported by complementary social and infrastructure programmes to promote inclusive growth and efficient delivery of public goods.