Kamal Nath to meet PM, seek fiscal relief
Budget proposals did not address concerns of labour-intensive sectors, says the Commerce and Industry Minister Kamal Nath.business Updated: Mar 02, 2008 20:59 IST
Disappointed with the budget proposal relating to the export sector, Commerce and Industry Minister Kamal Nath will soon meet Prime Minister Manmohan Singh and seek fiscal relief for exporters hit by the appreciating rupee.
“None of the recommendations of both the Rangarajan and the Krishnamurthy Committee has been considered in the budget. We are very disappointed and the commerce minister will meet the Prime Minister in the next few days,” an official said.
However, when asked whether he was happy with the budget proposals, Nath said, “I am happy with the non-commerce ministry part of it (the budget).”
As to how he would provide relief to exporters, Nath said the “process will go on.” The annual review of the Foreign Trade Policy, due by the month end, would try and address the concerns of exporters, Nath said.
The two expert committees appointed by the Prime Minister are believed to have recommended several fiscal and other measures to mitigate the trouble of exporters, especially in the labour-oriented sectors like textile, handicraft, leather and marine products.
“The budget has not addressed concerns of the labour-intensive sectors like textile, handicraft, leather and marine products, which are the worst hit by the rupee rise,” the official said.
According to commerce ministry estimates, the over 13 per cent rise in the value of the domestic currency against the dollar would impact about 2.75 lakh jobs in labour intensive sectors.