Effects of Union Budget on Indian Export Business

According to the reforms mentioned in the Union budget of 2010, the export sector of the country is likely to expect a surge in various fields. The year 2009 witnessed a sharp decline in the agricultural production due to the delay in monsoons. The decline in food production has led to the subsequent rise in the food prices. Prices of rice, oil and grains soared in the year 2009-10.

Impact on Export Sector

However, the finance minister has propagated various reforms for the benefit of the export sectors in the country. Many of the SME sectors, handicrafts, carpets and handloom sectors have been offered funds with 2 percent interest. The government has also announced certain reforms on taxes on specific export products.

The handicraft sector has benefited little from the reforms announced in the Union budget of 2010. The handicraft exporters are still not exempted from taxes which are major issues concerning the exporters. The labour intensive sectors such as the handicraft sector have had an unfavourable impact due to the reforms put forth during the Union budget.

Most of the export sectors which include the leather factories, jewelleries, marine, textiles and so forth have achieved little with the concessions allotted in the budget proposals. According to the recent budget proposals, the indian exporters could pay the service tax to the transporters after claiming the refunds instead of paying it first.

The excise duty on cotton and synthetic fibres has been increased by 4 percent which benefit some of the cotton industries. However, the excise duty on synthetic fibres will increase the end prices of the goods. The price rates of the raw materials are considerably high and as a result the prices of the export goods are also higher which increases the burden on the export sector.

While some of the measure and policies announced in the Union budget do bring in some relief to certain export sectors of the country, there are many sectors which have benefited little from the reforms and policies. There are still many SME sectors which need proper assistance in the form of structural adjustments which needs to be attended to by the government.

Major B2B Industries Which Influence the Indian Exports Business

There has been an incomparable growth in the export and import industry in India. Many reasons have contributed to the boom in the export industry. The increased use of internet facilities is definitely one among them. Due to the prominence of the b2b market facilities, the Indian products have succeeded in attaining a wide exposure in the global market.

B2B Industries Which Influence the Export business

The b2b directories pose as a boon to the small and medium enterprises as it confer these sectors a golden opportunity to display their products in the international market. The Indian export industry and indian exporters has flourished mainly due to the contribution of the small and medium enterprises. There are a number of industries listed in the b2b directories which have substantial influence on the Indian export sector.

Some of the most important b2b industries are listed below:

• The Indian Textile Industry: The textile industry is one of the oldest industries of the Indian economy. The industry contributes around 30 percent of the total exports of the country. It is also the second largest producer of employment opportunities to the vast population of the country.
• The Chemical Industry: This is yet another most important b2b industry which has a pertinent influence on the export sector of the economy. Contributing to around 7 percent of the Indian GDP, the chemical industry has varied products listed in its genre. Most of these products like chemical, drugs, pharmaceuticals, cosmetics, pesticides and so forth are exported to different countries all over the world.
• The Agricultural Industry: The agricultural sector in India is one among the world’s largest sectors. This sector is alluring in the global market because of its diverse products. The Indian agricultural products include diary products, animal feed, cereals, meat and poultry products and so forth.
• The Plastic Industry: This is another important industry in India which contributes to the export sector of the economy.
• The Indian Leather Industry: Providing employment to around 2.5 million people, the Indian leather industry is among the top 8 export industries of the country.

These industries which are listed in the business to business directories have craved a niche for themselves in the global market through their export business.