‘We’ve gone in for ambitious diversification’ | business | Hindustan Times
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‘We’ve gone in for ambitious diversification’

It is dynamic, forward looking and would boost the confidence of the industry in general and exporters in particular. We have given new incentives, and continued the incentives given earlier.

business Updated: Aug 27, 2009 22:03 IST
Gaurav Choudhury

On the big idea of the policy

It is dynamic, forward looking and would boost the confidence of the industry in general and exporters in particular. We have given new incentives, and continued the incentives given earlier.

On new measures announced in the policy

We have taken a big step in the export promotion capital goods (EPCG) scheme to increase the life of existing plant and machinery. Technology upgradation of imports is sought to be promoted of capital goods for certain sectors at zero duty.

On labour intensive sectors

The main focus of the policy is on labour intensive sectors. We have announced measures for the gems and jewellery sector, the marine sector, the leather sector and for the first time the entire tea industry has been included. Tea is a labour intensive industry and there will be huge benefit for the plantation sector.

On credit to exporters

Assurance of dollar credit to exporters is a big feature of the policy, for which an inter-ministerial committee has been set up. It would facilitate export of manufactured goods and project exports in credit extended through the Exim bank for new and emerging economies.

On falling demand in the US and the European Union

Since demand has fallen in the traditional destinations, we have gone in for an ambitious diversification and expansion of products and destinations. I am not in a position to predict anything or speculate when the major economies, which are still in contraction, will turnaround and return to the pre-recession level.