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Package for 'weak' exporters next month.


Date: 28-11-2009
Subject: Package for 'weak' exporters next month
Mumbai: Poorly performing export sectors such as jute, carpets and mining may get special "support packages" in the first half of December, according to indications from the Ministry of Commerce and Industry.

Commerce and industry minister Anand Sharma said his ministry is currently conducting a "sectoral review" to find out which export sectors continue to face problems and are in need of further support.

Sharma had in August unveiled a new foreign trade policy, with a combination of fiscal incentives, reduction of red tape and programmes aimed at helping exporters redirect their exports from recession-hit markets like the US to alternate ones like Africa and Oceania."During the announcement of the FTP, we had promised that we will conduct a review during November. It is being conducted now to identify sectors that continue to be hurt by the economic downturn," Sharma said, before leaving for a ministerial meeting of the World Trade Organisation in Geneva.

Some form of support will definitely be provided to the sectors identified as "still hurting," the minister said. He, however, did not quantify the value of the benefits and shied from terming them "stimulus package."

"They would be provided special attention and support."Sharma also revised upwards the value of exports from India during October. Against an estimate of $12.5 billion of exports given by commerce secretary Rahul Khullar two weeks ago, Sharma said exports were $13.2 billion last month. The minister did not give details of the upward revision, but said the monthly exports were down 6.6% over the same month last year as compared with a 11.4% dip estimated earlier.

The minister also brought forward the earlier projection of climbing back into positive export numbers by early next year to hitting exports growth by the end of the current quarter. He reiterated his goal of doubling India's exports, expected to be around $160 billion this year, by 2014.

Considering the growth in domestic production of cotton, the director general of foreign trade has been asked to explore the possibility of allowing export of the commodity, he said.

Source : Dnaindia.com

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