Thaindian News

New Delhi, Jan 12 (IANS) Commerce Minister Anand Sharma Tuesday said his ministry would offer Rs.450-500 crore as incentives to exporters till this fiscal-end to push exports of 2,000 products.
“We will raise Rs.450-500 crore through our internal budget for providing stimulus to about 2,000 export products which have failed to revive,” Sharma told reporters here, adding: “We will not ask for financial assistance from the finance ministry.”

Sharma, who Jan 7 said he was pushing for stimulus for the export sector in the annual budget, also announced that the government would target markets in Japan and China.

Director General of Foreign Trade R.S. Gujral said the scheme would continue next financial year, but clarified that the Rs.450-500 crore that the commerce ministry would raise would be given for only the three remaining months of this fiscal.

India’s exports rose 9 percent to $14.6 billion (Rs.73,000 crore) in December, up from $13.2 billion (Rs.66,000 crore) in November, when exports rose 18.2 percent after 13 straight months of decline.

Welcoming the government’s move, Harsh Pati Singhania, president of the Federation of Indian Chambers of Commerce and Industry (FICCI), said the package of new incentives would give a boost to exporters.

“These incentives are particularly welcome as they would benefit critical product groups, including labour-intensive sectors such as hand tools, plastics, rubber, handicrafts, machinery and engineering goods, chemicals, auto components, woven fabrics of cotton and iron and steel,” Singhania said in a statement.

“They would greatly help in achieving a quick turnaround in our export performance in the months ahead.”

FICCI has also urged Finance Minister Pranab Mukherjee to consider the corporate sector’s demand for providing interest subvention to additional sectors, including engineering goods and chemicals.

The chamber also asked for dollar credit at lower rates of interest.