The government will come out with the interim trade policy today. While the policy may lack any fiscal measures due to lack of headroom, the policy may be high on non-fiscal measures.
Commerce Minister Kamal Nath has said that he will look at export-hit sectors textiles, gem and jewellery � though he added nothing concrete has been decided on this.
The government may bring down cost of exporting by diluting export obligations and simplifying rules on service tax refunds and lowering demurrage charges.
The government may also announce lower export obligations and more time to meet them. It could also look at diluting the export obligation against duty-free import of machinery and raw materials under schemes such as the export promotion capital goods scheme.
Exporters will be able to claim refund as and when they export, as against the current practice of quarterly refunds, it is expected.
Source : Moneycontrol.com