The Centre has announced incentives worth Rs 900 crore for exporters.
The beneficiaries include the engineering, pharmaceuticals, chemicals and electronics sectors and those exporting to Latin America, Africa and the Commonwealth of Independent States.
This package, as well as restoration of the interest subsidy scheme by the Reserve Bank of India on Tuesday for carpets, handicrafts, handlooms and small and medium enterprises, has taken the total ‘Diwali bonanza' for exporters to around Rs 1,700 crore.
These measures — aimed at market diversification, export basket expansion and procedural simplification — come at a time when the country's export growth has slowed down owing to a fall in demand in traditional markets such as the US and the European Union.
Push for apparels
Noting the decline in apparel exports to major markets, the Government has extended the Market Linked Focus Product Scheme for exports from this sector to the US and the EU. The duty credit for exports from this sector has been extended till the end of this fiscal.
The sops announced by the Commerce, Industry and Textiles Minister, Mr Anand Sharma, on Thursday have been incorporated in the Foreign Trade Policy (2009-14).
Mr Ramu S. Deora, President, Federation of Indian Export Organisations, said, “It will help exporters to offer products at competitive prices at a time of weak demand in advanced economies.”
The Government would also soon announce extension of the Zero Duty Export Promotion Capital Goods Scheme and the Status Holders Incentive Scheme till this fiscal end. Mr Sharma has held meetings with the Finance Minister, Mr Pranab Mukherjee, in this regard.