Bangalore: Citing "serious fiscal situation", Union Commerce Secretary Rahul Khullar said that no new incentives and sops could be provided to exporters in the next fiscal in view of significant resource crunch faced by Centre.
Khullar tersely told a meeting of exporters here last night that the current fiscal situation was so serious that it was not going to be a "temporary problem" in terms of resource-crunch.
There was bad news for exporters who tend to believe that
the government would come around next year and "throw money"
at them, he said addressing Federation of Karnataka Chambers
of Commerce and Industry, Federation of Indian Export
Organisations and Bangalore Chamber of Industry and Commerce.
"There are some problems which will not go away merely
because you throw money at them", he said.
In April-August this fiscal, India`s exports contracted by
31.3 percent to USD 63.9 billion from USD 93.1 billion in the
same period last year as demand weakened in its traditional
markets of the US, European Union and Japan, which account for
more than two-thirds of its outward shipments, he said.
When the country was facing a tight budgetary constraint,
the government has no option but to tell the exporters that it
can`t give anything next year because "there is a bigger
Khullar told the exporters to dispel any notion that
"this is a temporary phase and come next year there will be
upturn in the economy and suddenly Commerce Ministry will come
around and give more incentives and sops".
"Those of you who are banking on that to happen, I am
sorry, it`s not going to happen", Khullar, who heads a
inter-ministerial panel to address exporters` woes, said,
adding, if exporters lived on that hope, it would not come
FIEO president A Sakthivel said though export figure
showed a negative growth of 19.4 percent in August, it`s a
positive development after constant decline of about 30 percent in the past six months.
France and Germany also posted good results in the second quarter of 2009 raising hope of recovery in Euro zone.
"However at this stage, it would be premature to conclude that
we are on way to recovery....", he said.
Sakthivel requested the Commerce Secretary to monitor
the delays in refund of service tax and central excise rebate
for exports. "What can be stated with certainty that not more
than 10 percent of the exporters have got the refund for
service tax and the average delay in getting central excise
rebate is more than three months", he said.