Exporters unlikely to get any sops before April 2013
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Exporters are unlikely to get any sops from the government, at least till the next financial year, even as they face tough times in international markets because of global slowdown.
"Whatever needs to be done for the exporting sector is expected only when the annual review of the Foreign Trade Policy (FTP) is done sometime in April," a senior official said.
The Director General of Foreign Trade (DGFT) in the Ministry has recently completed a review of different export sectors including engineering, gems and jewellery, handicraft and leather.
The problem seems to be more for the employment oriented sectors such as handicraft and textiles.
Earlier, the Finance Ministry had assured the Commerce Ministry that it was examining different options for helping the export sectors.
The bulk of India's exports of about USD 300 billion go to the US and Europe which have been facing demand slowdown. Both these markets account for about one-third of country's total shipments.
Although exporters have been trying to find new markets within Asia, Africa and Latin America, the impact of slowdown in the western markets is likely to be significant.
Against the backdrop of global economic uncertainties, India's exports are unlikely to touch USD 300 billion this fiscal. For the first seven months (April-October) of 2012-13, exports have shrunk 6.18 per cent to USD 166.92 billion.
The Commerce Ministry, according to an official, has proposed interest subsidy for different sectors such as engineering, which are reeling under the impact of global
"The continuous decline in exports has prompted the worried government to think of extending sops for labour intensive sectors like textiles," the official said.
The Federation of Indian Export Organisations (FIEO) has said that sectors like engineering, textiles, gems and jewellery are severely hit by the global demand slowdown.
"These sectors need support. In order to boost exports of branded items, we have asked the government to announce a scheme. There is an urgent need to push shipments of branded products," FIEO President Rafeeq Ahmed said.