Mumbai: Leading exporters body Federation of Indian Export Organizations (Fieo) today demanded a 10-fold increase in the Market Development Assistance Scheme to Rs1,000 crore to meet the country’s export target of $200 billion in FY’09.
The scheme should be made available to all exporters and the fund should be increased from Rs100 crore to Rs1,000 crore, FIEO President Ganesh Kumar Gupta said in a statement.
Even this 10-fold increase would only mean making available 0.10% of the total export target as against the present meagre 0.01%.
“Raising it to Rs1,000 crore too would work out to be a small amount in percentage terms considering the export target of Rs1,00,000 crore,” he said.
FIEO also called for benefit under the focus market scheme to be enhanced to five per cent and demanded that the scheme be extended to more countries.
With the country’s exports showing a negative growth for the first time in five years (15%), Gupta said that the Government should announce a stimulus package for the industry.
“Exporters are not awaiting a relief package but instead a stimulus package, so as to stimulate the export sector,” Gupta said.
This could be in the form of increased availability of credit, competitive cost of credit, availability of dollar-denominated credit, insurance for exports to new buyers or countries, greater encouragement to participate in international trade fairs and exhibitions and abolition of Fringe Benefit Tax (FBT), he said.