The Ministry of Commerce and Industry is likely to extend incentives to certain export sectors such as engineering products, leather, gems and container, which have seen shipments shrink over the past six months.It is learnt that the Ministry has started a review of key export sectors that will be completed November-end. Based on that, it may announce some incentives to boost exports of products for which shipments have been declining.
The Commerce Department’s budget allocation is INR 1,673 crores for the current financial year. The Ministry is likely to consider ways to make exports from India competitive by offering incentives that are not performing well in particular markets.
Concessions would, however, have to be made in accordance with World Trade Organization norms, which state a country cannot extend subsidies to a sector in which it has already attained a share of 3.25% of global trade.
Mr. Ajay Sahai, Director General, Federation of Indian Export Organizations, said: “Exports have not been encouraging in October as well. The issue is that some of the concessions announced in the Foreign Trade Policy (FTP) in June have not been implemented by the Finance Ministry.”
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