India Inc hails govt steps to boost exports

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SME Times News Bureau | 27 Dec, 2012
Welcoming the Government's move for all exports incentives announced on Wednesday, by Anand Sharma, the Union Minister of Textiles and Commerce, Indian industry chambers and export promotion councils said that the incentives for Small and Medium Enterprises (SMEs), Engineering and SAARC region was the most welcome steps.

Speaking on the announcement Chairman, AEPC, Dr. A Sakthivel said, "2 percent Interest Subvention Scheme decision to extend for specific sectors up to 31st March 2014 is a timely move and will help in boosting the exports."

"It will surely give needed thrust to the apparel and textiles sector which was reeling under the sluggish markets of US and Europe. The impacted markets especially in Europe and America's and the resultant weak demand have adversely impacted performance of our exports."

Chairman AEPC also commented that, "I am grateful to Textiles Minister, Shri Anand Sharma, for the decision has been taken to grant incentive on incremental exports made during the period January-March 2013 over the base period January-March 2012."

"This incentive would be available to an IEC holder at the rate of 2 percent on the incremental growth of exports made to USA, EU and countries of Asia. 74 percent garments exporters would get the benefits of this scheme," he added.

"On the extension of markets for Market Linked Focused Product Scheme and Special Focus Market Scheme Chairman said that, It will help in boosting the exports to non-traditional markets and help in product diversification drive. We are already targeting the newer markets and the buyers response is positive in the new countries."

While, Chairman CII National Committee on Exports and Imports and CMD, Patton group, Sanjay Budhia said, "The recently announced additional incentive measures by the government like - extending 2 percent Interest Subvention Scheme on rupee export credit which is available to certain specific sectors up to March 31, 2014 as well as for the Small and Medium Enterprises (SMEs) for all sectors is indeed a welcome step."

"Also extending interest subvention to certain specific sub-sectors of the engineering sector till 31st March 2014, will also help the exporters who are affected by the declining exports to the US and EU," he added.

Welcoming the move, FICCI Secretary General Dr Didar Singh said "The set of export sops will be critical in arresting the recent declining trend in our exports. We particularly welcome extension of interest subvention scheme for the existing sectors up to end-March 2014 as it would significantly help exports of a number of labour intensive products and SMEs."

"We are happy that this scheme has been expanded to include select engineering goods including hand-tools, since export of this important product group has fallen by about 8 percent in April-October 2012."

The pilot scheme of 2 percent interest subsidy for project exports through Exim Bank to Africa and SAARC countries and inclusion of additional countries & products in various export promotion schemes are also positive move, the FICCI Secretary General observed.

Another useful measure is the decision to provide incentive on incremental exports to be made during January-March 2013 over similar period in 2012 to USA, EU and countries of Asia. This will give the much-needed extra push to augment exports in Q4 of 2012-13, a FICCI statement said.