look news india
After the Red Sea crisis, the difficulties of the industries related to the import-export sector of the country have increased in the last eight months, the industries are demanding that the central government should announce an incentive scheme for container manufacturing in the next budget.
Due to the current difficulties in obtaining containers, the import-export industries through sea route face huge financial problems. In such a situation, a scheme similar to the Production Linked Incentive Scheme announced for the electronics manufacturing sector of the country should be implemented for the container manufacturing sector as well.
Currently, containers play an important role in maritime imports and exports. While China has a monopoly in the production of containers, if the government announces a PLI scheme in this sector, foreign capital investment will also come to India. So that local industries also get relief. Apart from this, container volume in India will also increase by 8 percent to 342 million tonnes in FY 2024-25. According to a report by Care Edge Ratings, the addition of a dedicated freight corridor with Jawaharlal Nehru Port will see an increase in container usage. DFC will be merged with JNPT in FY 2025-26. Apart from this, increase in container carrying capacity of various ports will also see growth. This will also have an impact on the fact that the share of coastal cargo, which was 34 percent in FY 2022-23, will increase to 42 percent in FY 2025-26.
The cargoes currently seen at Indian ports are petroleum, oil and lubricants (POL), coal and container based. A CAGR of 4 per cent has been witnessed over the last three years from 2021-22 to 2023-24. On the other hand, coal and container volumes witnessed a significant growth of 13 per cent and 9 per cent, respectively.
Demand to solve the problems of industries from central government
After the Red Sea crisis when Indian industries are facing difficulties in getting containers, there is a growing voice from the trade community that there is a need to create a regulatory mechanism for problems including containers at the global level to quickly resolve the container related problems of the industries.
Exporters have to inform the Reserve Bank. Due to the Red Sea crisis, exporters are not able to deliver their goods on time, as a result of which the exporter has to provide an electronic bank realization certificate from the importer that the exporter has received the money, the exporter has to inform the Reserve Bank that his goods have not yet arrived. E-BRC is issued by the concerned bank when the goods arrive. As soon as the exporter receives the money against the shipping bill, the exporter informs the bank, enters the export data processing and monitoring system and issues e-BRC. The exporter taking benefit under the Foreign Trade Policy is required to provide BRC proof.