Govt mulling more measures for exporters
The government is mulling few more measures for helping exporters, reeling under the steep slowdown of demand in the major markets of the US and Europe, Minister of State for Industry Ashwani Kumar said.business Updated: Jan 15, 2009 11:54 IST
The government is mulling few more measures for helping exporters, reeling under the steep slowdown of demand in the major markets of the US and Europe, Minister of State for Industry Ashwani Kumar said on Thursday.
"We are thinking of few other steps, which would formalise and will be announced soon," Kumar said on the sidelines of Petrotech-2009 in New Delhi.
The government has already announced stimulus packages in December 2008 and January. It had provided an interest subsidy of two per cent up to March this fiscal subject to minimum rate of interest of seven per cent.
Expressing disappointment over the second stimulus package, exporters has warned of "huge" job losses and missing the export target of USD 200 billion for the current fiscal, unless the government provides them further sops.
The Federation of Indian Export Organisations has asked the government to increase drawback rates for tax refunds and additional two per cent interest subsidy.
Asked if there is any possibility to achieve the export target for this fiscal, he said," there could be some shortfall in certain sectors like gems and jewellery."
"Some sectors like consumer durables and white-collar goods could be hit because of production cost," he added.
The country's exports, which posted a robust 30.9 per cent growth in the first-half of this fiscal, contracted by 12.1 per cent in October, for the first time in five years. The negative trend continued in November, when exports fell to USD 11.5 billion, from USD 12.7 billion.
In 2007-08, India's exports had totalled to USD 165 billion, against the target of USD 160 billion.