Budget 2022

Jaitley expects 15% rise in exports, increases provisions for schemes

Amiti Sen | | Updated on: Feb 01, 2018
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Exporters hopeful more members of the community could benefit from schemes

Estimating a robust increase of 15 per cent in goods exports in 2017-18 -- which could increase outbound shipments to a high of $ 316 billion -- Finance Minister Arun Jaitley has made higher provisions under the interest equalisation scheme (IES) and remission of state levies (ROSL) for exporters.

Exporters are positive about the higher allocations for interest equalisation and ROSL in Budget 2018-19 and are hopeful that more members of the community could benefit from the schemes.

“The increased allocation from ₹1,100 crore to Rs 2,000 crore for the IES for the current year and ₹ 2,500 crore for 2018-19 would help the export sector as it gives cushion to include merchant exporters and services exporters,” pointed out Ganesh Kumar Gupta, President, FIEO.

Under the IES, exporters are provided bank loans at lower interest rates with the Centre compensating the banks for the difference in rates.

Similarly, enhanced allocation for ROSL, which compensates for state levies, from ₹ 1,555 crore to ₹ 1,855 crore for the current fiscal and ₹ 2,164 crore for the subsequent fiscal will not only help in clearing the backlog but could also be used to extend the benefit to carpets, handicrafts and fabrics & yarn exports, Gupta added.

The extension of fix term employment facility for all sectors is also expected to benefit the exporters. “It will allow them to provide additional jobs as and when they get export orders particularly in sectors where the demand is seasonal in nature,” the FIEO chief said.

At the projected growth rate of 15 per cent, exports in 2017-18 would increase to $316.85 billion which is higher than the previous high of $314 billion in 2013-14.

Last year, exports had increased by 5.17 per cent to $275.85 billion after two successive years of fall in outbound shipments.

Published on February 01, 2018

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