Moneycontrol Bureau
Union commerce minister Anand Sharma today announced a number of measures to boost dwindling exports, which fell 4.6% in June despite rupee depreciation.
The measures include increasing interest subvention rate to 3 percent from 2 percent and penetrating it deeper to include new sectors like handloom, handicraft, toys, carpets, sports goods, processed food, readymade garments, 200 tariff line in engineering sector and textile sector.
“Government has been very concerned about weak exports and the continuing trade account imbalance and deficit, which needs to be addressed,” commerce minister Anand Sharma said.
He was also disappointed with the first quarter exports results. He said first quarter trade deficit at USD 50 billion was not healthy for the economy. Also read: Exporters to benefit from increased subvention rate: FIEO
Sharma said that commerce ministry and Directorate General of Foreign Trade (DGFT) are in the process of widening the coverage for interest subvention scheme. They are currently in the process of identifying the sectors and the tariff line for coverage under the scheme.
The government is also planning to expedite the process of reposing to outstanding claims of exporters. “the government is making available the required resources to clear all claims of the exporters from first January to until now and provision are being made to ensure the claims of all exporters what is due to them are settled forthwith,” Sharma added.
Commerce ministry is also additional plan allocation under the market access initiative (MAI) for market development assistance. FY14 export target cut
Sharma said following slowdown in global market the government had to cut export target for current financial year to USD 325 billion from USD 350 billion earlier. The country's exports fell in 2012-13 to USD 300.6 billion.
Sharma said that government is planning to incentivise value addition for gold jewellery exports and will also soon to take a decision revising duty drawback rates.
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