GEA expectations from Budget 2008

11 Feb '08

3 min read

As the relief package so far announced by the Ministry of Finance has failed to offset the losses incurred by the exporting community because of sharp and persistent appreciation in the value of rupee, seriously eroding the competitiveness and profit margin of Exporters, GEA hopes that the forthcoming Budget proposals will provide some concessions to employment oriented Textile and Garment Sector as the Government is giving high priority to employment generation.

According to Mr.Surinder Anand, Executive Secretary, GEA, the basic objective of the budget should be to make exports competitive as well as profitable. The wish-list of GEA from the Budget is that following GEA Pre-Budget recommendation would receive due consideration of the Finance Minister while finalizing the Budget proposals:-

GEA PRE-BUDGET RECOMMENDATIONS:-
1. To reduce the transaction cost and grant necessary fiscal and commercial relief to enable garment exporters to face increasing International competition by providing a suitable package of incentives.

2. The Government should increase duty drawback rates by atleast 5 per cent from 11% to 16%.

3. Adequate and need-based funds to exporters at reasonable rates of interest which should not exceed 7 per cent as applicable to agriculture sector. The interest on pre and post shipment credit should be decreased further by 2% and ensure proper implementation of the credit relief. The period of pre and post shipment credit may be extended to 360 days.

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