Exports down: FinMin yet to notify scheme announced in June
New Delhi: Worried over continuous decline in exports, the Commerce Ministry has stepped up its pressure on Finance Ministry to expeditiously notify a scheme which was announced in June to boost the overseas shipments.
"The Commerce Ministry has written two-three letters to the Finance Ministry. The notification is awaited," an official said.
On June 5, while announcing Foreign Trade Policy, Commerce and Industry Minister Anand Sharma had introduced a new "Post-export Export Promotion Capital Goods" scheme.
The scheme is aimed at giving a choice to exporters to import capital goods on duty payments and claim the duty back even after fulfilling 85 percent to the export obligation. It is meant to reduce transactions cost and make Indian exports more competitive.
"India's exports are contracting since May, the scheme will help exporters during the crisis period. We would urge the Finance Ministry to notify it soon," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.
The country's exports are declining since May due to slowdown in the global markets. In September, it dropped by 10.78 percent to USD 23.69 billion, widening the country's trade gap to a 16-month high of USD 18 billion.
India has fixed a target of USD 360 billion export during the current financial year. But according to industry experts, the target is difficult in the wake of global and domestic factors.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that besides global economic uncertainties, the raising cost of fuel and inflation is hurting the country's exports.