New Delhi, Feb 12 The government today increased the duty credit given to exporters from 5 per cent to 6.25 per cent to give a leg up to the exports hit hard by a sharp decline in demand due to the recession.
The carpets would be given higher incentives subsequent to their shifting from the Vishesh Krishi and Gram Udyog Yojana to the Focus Product Scheme under which duty credit is given on specific items.
However, the sops would be limited to the handmade carpets and other floor coverings, an official statement said.
" This industry has to face stiff competition from the competing manufacturing countries like Pakistan, China, Iran and Nepal. Our industry needs longer period of advance both for pre-shipment and post-shipment interest rates not exceeding 6 per cent," Carpet Export Promotion Council Chairman Ashok Jain said.
He said the industry employs 30 lakh people, of which about 10-15 per cent workers are expected to be laid off soon, if there would be lack of orders from the countries in the West.
India exported carpets worth USD 875.71 million in the last fiscal and more than half of it was shipped to the US.
Source : www.indopia.in