Exporters, industry pleased with sops in trade policy
Up against weak recovery in major markets, exporters and the industry welcomed incentives worth Rs 1,052 crore, stating the steps in the annual review of the Foreign Trade Policy will help India achieve the export target of USD 200 bn this fiscal.
In order to give immediate relief, a bonus incentive (over and above the present benefits) of two percent has been announced by Commerce and Industry Minister Anand Sharma to sectors like handicrafts, handloom, silk carpets, leather and leather manufacturers, sports goods, toys and select bicycle parts. The extra sops are two per cent of the export value.
"We are happy that the sectors which were not doing well have been considered. Extension of the Duty Entitlement Pass Book (DEPB) Scheme and interest subvention are welcome," President of the Federation of Indian Export Organisations (FIEO) ) A Sakthivel said. However, extension of DEPB up to 30th June is for the last time.
In the annual supplement of the 2009-2014 FTP, government on Monday extended fiscal incentives worth Rs 1,052 crore to exporters, particularly for the labour-intensive textile, handicrafts and leather sectors, to make them competitive in the markets of the developed nations witnessing a weak recovery after the 2008 recession.
FICCI President Rajan Bharti Mittal said, "I hope with all these incentives we should be able to achieve the target of USD 200 billion".
However, given the uneven recovery in the world economy, export performance needs to be closely monitored, he said.
While the country's merchandise exports have grown by 31 percent in the first quarter, USD 178.6 billion shipments in 2009-10 showed 3.5 percent decline over the previous fiscal because of the global economic woes.
"Special focus to the labour-intensive sectors is most welcome. The focus on reducing transaction is very critical and therefore a laudable step," CII Director General Chandrajeet Banerjee said.
The leather exporters are particularly pleased with the policy review.
"Commerce and Industry Minister Anand Sharma stepped in at the time when it needed the most. A very positive step towards inclusive growth," Chairman of the Council for Leather Exports Habib Hussain, said.