As exports rise, incentives may be rolled back

The finance ministry may withdraw fiscal sops handed out to exporters as the government looks for ways and means to rein in the fiscal deficit.

The finance ministry may withdraw fiscal sops handed out to exporters as the government looks for ways and means to rein in the fiscal deficit.

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“My fear is that North Block (Finance Ministry) guys are having a hard look (at the numbers) to fix the budgetary hole and easy target are exporters,” commerce secretary Rahul Khullar said.

India’s exports had contracted for 13 successive months — before turning positive last month — amid drying out of orders from countries in Europe and the US.

“Some sectors have recovered, and fared well in November. I think we could look at withdrawing the subsidies to some sectors," Khullar said.