Millennium Post
Business

Govt may announce sops for exporters in FTP

The government may announce sops like interest subsidy for hard-pressed labour intensive sectors such as textiles and carpets in the foreign trade policy on Tuesday to provide them cushion against the global slowdown.

‘There will be some incentives for exporters. The commerce minister is also likely to announce some steps to reduce transaction costs,’ an official said.

Commerce and industry minister Anand Sharma has already reviewed the situation of exports with all stakeholders, including the industry and export promotion councils.

Sharma had also discussed with finance minister Pranab Mukherjee the issues such as rupee depreciation, cost of credit and eurozone crisis affecting exporters.

The economic crisis in major markets - the US and Europe - is hitting India's exports. Both these markets account for about one-third of country's total shipments.

The expansion in the country's merchandise exports, which grew by as much as 82 per cent in July 2011, came down to 3.2 per cent in April 2012 due to the demand slowdown.

In April, exports of gems and jewellery and readymade garments contracted by 25.7 per cent and 9.7 per cent to $2.6 billion and $1 billion, respectively.

In the last FTP announced in October 2011, the government had extended export incentives worth Rs 1,700 crore.
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