The government will soon announce incentives for exporters to provide them a cushion in the wake of declining exports and global slowdown, a senior official said on Monday.
“In a couple of days, it will announced,” Commerce Secretary S R Rao said when asked by when the government is planning to provide exports sops to exporters.
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.
The bulk of India’s exports of about $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.
The Commerce Ministry, according to sources, has proposed interest subsidy for different sectors such as engineering besides other incentives.
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.
During the April—November this fiscal, the country’s shipments have shrunk by 5.95 per cent to $189.2 billion.
Rao said that although the exports are declining but “we have arrested the slide”. In April—October exports have declined by 6.18 per cent.
He expressed hope that during the last quarter of the fiscal, exports situation will improve.