A worried government is planning to a slew of measures to boost the sagging export sector that is struggling to stay afloat in a shrinking world market.
“We hope that after consultations with the Finance Minister Pranab Mukherjee, we will be able to give more encouragement, possibly in the new FTP,” commerce and industry minister Anand Sharma said.
Sharma met industrialists and representatives from the exporting community on Monday to discuss the forthcoming foreign trade policy that would unveiled later this month.
India’s exports contracted for the ninth successive month plunging by 27.7 per cent in June. The policy is expected to be announced later this month.
Exports for the month of June were $ 12.81 billion, compared to $17.73 billion in the previous year, latest trade data released on Monday showed.
Shrinking world demand has affected India’s handicrafts, gems and jewellery, leather and textile exports severely.
In the budget presented about a month ago, the government had announced a several measures, including extension of an existing subsidised bank loan scheme and widened the list of tax free services to bail out exporters.
The government also widened the service tax exemption net for exporters to help traders reduce transaction cost stay competitive in the world market for which they can claim refund of taxes.
“We are working on a long-term vision to be reflected in the FTP,” Sharma said.