Mixed response from exporters to interest subvention
24 Aug 2010
The 2 per cent interest subvention scheme introduced in the 2009-2014 foreign trade policy annual review, as an additional stimulus to exports, is expected to make a positive difference in helping exporters get interest payment and relief (See: Government renews sops for export-oriented goods)
Under the annual foreign trade policy review, zero duty export promotion capital goods (EPCG) scheme been given an extension of one year to 31 March 2012, duty entitlement passbook (DEPB) scheme has been extended by six months till 30 June 2011, the number of additional products from sectors like leather, engineering, textiles, jute have been added to 2 per cent interest subvention scheme and additional benefit of 2 per cent bonus has been given under focus product scheme.
With this, the government has handed out a Rs1,000-crore ($214 million) package of fresh incentives to exporters who are still struggling under uncertain global market conditions and has assured a review of the situation in a few months.
''We are not out of the woods yet,'' said commerce and industry minister Anand Sharma, while announcing the annual trade policy review yesterday.
''The uncertainty surrounding exporters' prospects continues to linger,'' he said. The incentives are primarily meant for labour-intensive export sectors such as leather, carpets, handicrafts, engineering goods, jute and ready-made garments, currently facing an uncertain six months because of problems in US and Europe.
Exports make up less than a fifth of India's $1.2-trillion economy but provides livelihood to millions in the country.
The government is confident it would be able to achieve the targeted $200 billion exports for the year, despite the low exports growth to 13.2 per cent in July, after a period of five months during which it witnessed 30-per cent growth.
