New Delhi, Jan. 12 The Government has announced duty benefits for 2,000 new products to sustain revival in exports.
The benefits will now also apply to exports to two new major markets — China and Japan. They will cost the exchequer around Rs 500 crore for the remaining period of this fiscal.
The Commerce Ministry is also discussing with the Finance Ministry the possibility of giving interest subsidies and cheaper dollar credit to exporters, besides thinking about giving more time to exporters to realise overdue export proceeds. The sectors that will be benefited by these measures include labour-intensive industries, those that have recovered partially from the global financial crisis, and those still in the red.
Exports were in the negative territory for 13 consecutive months from September 2008, the biggest drop being 34.4 per cent in May 2009. However, following the Government's fiscal and monetary stimulus measures and due to similar measures taken by other countries to induce demand, exports' growth returned to the positive territory in November ($13.2 billion, 18.2 per cent growth from a year earlier) with the trend continuing in December too ($14.6 billion, a growth of 9.4 per cent over November).
Announcing the new measures here, the Commerce and Industry Minister, Mr Anand Sharma, said, “Though exports have started showing positive growth, we need to be cautious as the recovery is neither uniform nor strong. The growth is also against a low base. Many sectors will continue to need support for full recovery. We have to note that the recovery in demand in markets overseas is fed by stimulus packages and is not happening on their own.
“Incentives for exports to two new major markets — China and Japan — will have a positive effect.”
The Minister said the new measures have been taken after a performance review of all sectors, and these will take effect from Wednesday.
Source : Business Line