Govt announces incentives on select exports

20 Jan '10

2 min read

In a bid to improve exports from dwindling sectors and to maintain their positive growth rate, a stimulus of Rs. 5 billion has been offered by the government to select exports; along with which, incentives have also been announced for exports to China and Japan in order to promote exports to these countries.

The sectors, including cotton-woven fabrics, auto components, engineering products, electronic goods, chemicals were offered the stimulus. Commerce and Industry Minister Mr. Anand Sharma announced the expansion of Focused Product Scheme (FPS) and special FPS by including 225 new products.

Under the FPS, exporters would avail an incentive of 2 to 3 percent. Besides, they are also receiving extra benefits under the Market-linked Focused Program, in which China and Japan have been included.

In this regard, Mr. Sharma expects to achieve improved growth rate in the last quarter (January-March) of ongoing financial year, against the growth that was anticipated in the month of August, when the foreign trade policy was announced.
Handicraft exports would receive additional support to establish ware-houses in Latin America by the Export Promotion Council for Handicrafts, under the Market Access Initiative Scheme.

Moreover, Commerce and Industry Ministry had proposed the Finance Ministry to continue the 2 percent interest subvention for labour-intensive sectors and urged to cut down the interest rate for dollar credit in order to bring it to the level of international rates.

Fibre2fashion News Desk - India

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