Economic survey 2009-10: Export incentives may be re-distributed in April, says Scindia
25 Feb 2010
The commerce and industry ministry may re-jig export incentives after a review in April, withdrawing them from certain export-oriented industries and reallocating these to sectors that are still struggling for survival after the downturn.
"A decision for any kind of change in stimulus measures for the sectors coming out from the impact of the global financial meltdown will be taken after 31 March," minister of state for commerce and industry Jyotiraditya Scindia told reporters in New Delhi on Tuesday, after a function organised by Assocham.
While tobacco, spices, man-made yarn, gems, chemicals and jewellery have shown satisfactory export growth in the past few months, textiles, handicrafts, carpet and engineering goods are still reeling under the impact of the global crisis, he said.
The ministry had given enhanced assistance to exporters to explore new markets and an extension of duty refund scheme till December 2010, besides other sops.
On budget expectations, Scindia said he had requested finance minister Pranab Mukherjee to at least retain the allocation of Rs3,652 crore for the ministry, as was done in the previous year.
After declining for 13 straight months, exports grew 18.2 per cent in November. Growth stood at 9.3 per cent and 11.5 per cent in December and January respectively.
Textiles minister Dayanidhi Maran was in favour of the continuation of stimulus measures for some more time as the sector is yet to recover fully. ''Yes, we support the views of the industry and I am sure that they will be considered. It's not that we have jumped out of the recession and running,'' Maran said at the same function.
Ficci president Harsh Pati Singhania said, ''With the global recovery in its initial stages, the government should watch the export performance in 2010 before taking a call on the stimulus measures.''
The government had provided over Rs1,80,000 crore as part of three stimulus packages last year to prop up the economy against the global downturn.