New Delhi: The government will unveil on Thursday incentives for exporters in a difficult global environment, even as country’s merchandise exports have grown by over 50% in the first half of the current fiscal.
However, commerce secretary Rahul Khullar on Wednesday indicated that the exporters should not expect any bonanza. After the Reserve Bank announcing 2% interest subsidy for carpet, handicrafts, handloom and the small scale industry, Thursday’s package would cover a few more labour-intensive sectors, sources said.
The sops would be part of the annual supplement to the 2009-14 Foreign Trade Policy (FTP) to be unveiled by Commerce and Industry minister Anand Sharma. He is “scheduled to announce an export promotion package” an official statement said.
Khullar was forthcoming when asked what exporters can expect, “You draw your own conclusions. If I am reporting these numbers (52% export growth for April-September), then what do you think the minister will announce”.
Total exports for the current fiscal may reach striking range of $290-300 billion, Khullar said.
Though down from the 44.2% growth recorded in August, 36.3% rise in exports in September can be considered robust, given the economic woes in the US and the debt crisis in Europe. These are two major markets for the Indian exports.
As exporters seemed to be reaping dividend from market diversification, the trade policy may give more sops for exporters to venture into the promising markets of Africa, Latin America and a few unexplored Asian countries.
In January, the Commerce Ministry had given fiscal incentives worth Rs 500 crore to exporters of select products. The sops were given under different schemes like ‘Focus Market´ and ‘Focus Products´ and were from the internal budget of the ministry.
In the Focus Market Scheme, exporters get duty credit of 3% on the value of consignments, whereas under the Focus Product Scheme, they avail duty credit of 5 %.