The new Foreign Trade Policy announced by the Commerce Minister Anand Sharma on Thursday elicited lukewarm response from industry chamber Assocham.
Welcoming the extension of interest subvention of 2 per cent to engineering and textiles, Assocham said the steps taken are not adequate for giving a big boost to exports in a global market facing recession.
Rajkumar Dhoot, President of Assocham, said, “It is tough out there in the world market. Most of the import-export destinations, like Europe, are battling recession. Even in the US the revival signals are tentative despite the stock markets there reaching new highs driven by artificial infusion of liquidity. We expected some bold measures like fiscal incentives on export income. At the end of the day, entrepreneurs should find the export markets more attractive than the domestic market. Otherwise, where is the incentive to fight on the global turf.”
Dhoot, however, said the easing of SEZ norms was a welcome step, but added that the Minimum Alternate Tax should have been removed.
“Promises of tax-free enclaves should have been honoured. Besides, these special economic zones can become a vehicle for reviving the country’s manufacturing sector, which is struggling,” he said.