More incentives for exporters on cards
The finance ministry is likely to announce additional measures to boost exports besides the ones chalked out by commerce and industry minister Anand Sharma in the Foreign Trade Policy last week. Mahua Venkatesh reports.business Updated: Apr 22, 2013 20:52 IST
The finance ministry is likely to announce additional measures to boost exports besides the ones chalked out by commerce and industry minister Anand Sharma in the Foreign Trade Policy last week.
The government is looking at ways to provide "some sort of financial assistance and expand market access" to boost exports, even as uncertainty continue in the US and Europe, said sources.
Exporters are hopeful that the government comes out with tax-incentive schemes.
The current account deficit (CAD) - the gap between the outflow and inflow of foreign currency - for the third quarter stood at a record high at 6.7%. Finance minister P Chidambaram has already underlined the need to immediately address the widening CAD by boosting exports and expanding overseas markets by identifying new territories. He, has, however, said that the final CAD numbers for the full fiscal year would be more tolerable.
"We are seriously looking at ways by which exports can be given a push as the CAD numbers need to be brought down to a tolerable level," a senior finance ministry official who did not wish to be identified told HT.
India's exports declined by 1.76% to $300.6 billion during the previous fiscal year (2012-13). However, in a silver lining, exports in March grew 6.97% compared to a year-ago.
The Foreign Trade Policy outlined several incentives for exporters including a package to revive special economic zones (SEZs) and extension of an existing subsidised bank loan scheme.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) will submit its proposals for aiding the SME sector to the finance ministry by the end of this week, said Anil Bhardwaj, secretary-general, FISME.
"We have identified measures that are critical for the SME sector. We are finalising the proposals and would submit them to the finance ministry in the next few days."