The annual Foreign Trade Policy is likely to be announced in the beginning of April soon after the Commerce Department finalises incentives and facilitative measures to boost exports.
“On March 31 we will have the provisional numbers (for exports and imports in 2012-13). I will wait for that. Soon thereafter the FTP will be announced,” Minister for Commerce and Industry Anand Sharma told reporters after consulting representatives from exporters’ bodies FIEO and AEPC on the policy.
The Government is looking at ways to increase exports through the FTP to bridge the growing deficits in the trade and the current accounts and bring the balance of payments under control.
“The next fiscal will be a better year. But it (increase in exports) will not happen just like that. Exporters need to be properly incentivised. Transaction costs have to be reduced. Banks should come up with PCFA dollar credit at 4-5 per cent as we cannot operate with interest rates of 12-13 per cent,” FIEO President Rafeeque Ahmed said.
Exports in 2012-13 are expected to be around $300 billion, about the same level as last year. The poor performance is being largely attributed to slowdown in the Western markets, especially the US, the EU and also to some extent Japan.
The concessions that are announced in the FTP should have a validity for at least three years as there has to be continuity in policy for exporters to take advantage of it, Apparel Export Promotion Council Chairman A. Sakthivel said.
The Commerce Department is examining a number of proposals from the industry that includes extending direct cash incentives to exporters of a larger number of products to targeted markets.
Efforts are also on to convince the Finance Ministry to include more sectors in the interest subvention scheme being offered to exporters. The scheme gives a two per cent discount on interest rate charged by banks to exporters from select labour-intensive sectors.
A number of concessions for special economic zones will also be announced as part of the FTP, the Commerce Secretary had said earlier this week. This could include reduction in tax burden for both units and developers, relaxation in minimum area requirement for SEZs and some export incentives.
amiti.sen@thehindu.co.in