Bikky Khosla | 14 Feb, 2023
Union Budget 2023-24 was unveiled recently, it had widely been expected that the
Centre would come out with extensive measures to support the export sector, particularly
at a time when the country’s fiscal and current account deficits both are at a concerning
level. The Budget has, of course, introduced a number export-friendly measures,
but they, according to experts, although welcome, are hardly adequate.
increased allocation for some key export schemes. Allocation for Remission of
Duties and Taxes on Export Products (RoDTEP) scheme, for example, has been
increased from Rs 13,699 crore to Rs 15,069 crore. Similarly, allocation for
the Rebate of State and Central Taxes and Levies (RoSCTL) has been increased to
Rs 8,405 crore for the next financial year from Rs 7,461 crore in 2022-23. But
again, these increases are grossly inadequate, according to industry watchers.
also point out that allocation for the PLI schemes in almost every sector was reduced
in the Budget. This comes as a surprise – an unpleasant one – considering the
fact that the Indian industry was widely expecting a further boost to the
scheme, along with efforts to address its deficiencies. Such a measure could
have given a much-needed relief to the manufacturing sector, also benefitting
the MSME exporting community.
the increase in budgetary allocation for the Interest Equalisation Scheme from
Rs 2,376 crore to Rs 2,932 crore is a welcome decision, but according to exporters’
association FIEO, this amount is not enough. In addition, it terms the increase
in allocation for the Market Access Initiative scheme to Rs 200 crore as
inadequate. No doubt, the Centre needs to do a lot more in the upcoming days to
safeguard the sector from potential external shocks.