`Govt not to roll back incentives given to exporters`
The government today ruled out any possibility of rolling back the incentives given to the export sector saying the country has yet to fully recover from the impact of the global financial meltdown.
New Delhi: The government today ruled out
any possibility of rolling back the incentives given to the
export sector saying the country has yet to fully recover from
the impact of the global financial meltdown.
"All policies will remain in place ... all incentives
which we have given (to exports) will remain in place,"
Commerce and Industry Ministry Anand Sharma said when asked if
improvement in export performance and industrial output would
prompt the government to withdraw fiscal incentives.
The minister said that more steps would be taken in the
Foreign Trade Policy to help exporters hit by the global
financial crisis. "We will see what we can do correctly to
help exporters ... that (the steps) will come in the FTP in
second half of August," he added.
Although the exports have been shrinking since October
2008, the decline has been arrested in the past few months.
The dip in May was 29.2 per cent, while it was 33.2 in April
and 33.3 per cent in March.
Noting that stimulus packages and measures announced in
the Budget 2009-10 were having positive impact on exports,
Sharma said, "We still have to look at export sector which has
been hit hard by the slowdown."
The government had given interest subsidy, insurance
cover to exporters till March 2010, abolished fringe benefit
tax and enhanced allocation for market development assistance
among other incentives.
The commerce ministry is in discussion with exporters and
industry to chalk out the policies for the FTP to be announced
in the second half of August.
"We are engaged in consultations with stakeholders so
that we make our exports attractive and competitive," Sharma
The meeting of Board of Trade headed by Sharma to be
convened in the first week of August. The BoT, the apex
advisory body on the country`s export and import policy,
comprises noted industrialists like Anand Mahindra, Y C
Deveshwar and Azim Premji besides others.
Exports are on decline since October 2008 mainly due to
slump in demand in the major economies including the US and
EU. The US and EU together accounts for over 50 per cent of
the country`s exports. India`s shipments grew by a meagre 3.4
per cent to USD 168.7 billion in 2008-09.