New Delhi, Jan. 3: The government is likely to announce export sops for labour-intensive segments such as gems and jewellery, handicrafts and leather soon.
“The sectoral review being carried out by the commerce department is now complete and the recommendations are being finalised,” a senior commerce ministry official said.
Some labour intensive export sectors, which have been badly impacted by global recession, are demanding extra incentives from the government.
The ministry studied the impact of stimulus packages such as interest subsidy and incentives to explore new markets.
“There is a strong case for the government to not only continue with the existing sops but also give more incentives to exporters who have been badly hit by recession … No one knows what the trend will be in 2010,” A. Sakthivel, president of the Federation of Indian Export Organisations, said.
Exports, which had slipped into the negative territory in October last year because of a contraction in global demand and stayed there for 13 months, posted a positive growth of 18.2 per cent in November 2009.
“We can say that exports are stabilising, there has been a growth in figures over the last year ... we move to positive growth terrain in the last quarter of this fiscal,” commerce minister Anand Sharma has said.
Between April and November, exports were valued at $104.2 billion against $134.2 billion over the corresponding period of the previous fiscal, a decline of 22.3 per cent.
Tax incentives offered to exporters in the Foreign Trade Policy will cost the exchequer Rs 2,200 crore, the Central Board of Excise and Customs has said.
In the new foreign trade policy, the government announced continuance of 2 per cent interest subsidy for exporters on pre-shipment credit and income tax exemption to 100 per cent export oriented units till the end of next fiscal.
It also extended the duty refund scheme till December 2010 and increased assistance for developing new markets.
Source : telegraphindia.com