 New
Delhi: High transaction cost, inadequate infrastructure
combined with various levies and cess are adversely
impacting India's export competitiveness, especially
in sectors like engineering goods, metals, ores, textile,
leather and pharma, said a study by industry body Assocham
said on Monday.
The
study points out that the aggregate adverse impact of
bottlenecks like poor infrastructure and cumbersome
procedures on exports was to the extent of 14 per cent
of the total value of exports, according to a study
by the chamber.
The
study found that exporters who import higher volumes
of inputs incur very high transaction costs, which leads
to increased manufacturing cost. The government should
check related procedures to reduce transaction costs
on imports and exports, it said in a release.
Cess
and levies impact exports the most with an incidence
of around
5.22 per cent of freight on board (FOB) value. Assocham
said metals and ores are the most burdened sector with
a number of cess, levies, poor infrastructure and export
procedures.
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