SME Times News Bureau | 07 Sep, 2019
The government may offer a slew of sector-specific
incentives to push dwindling exports from the country, said a news agency
report on Friday.
Among the proposals being considered are raising export credit, extending tax
benefits and cutting import duty on certain inputs items.
A Commerce Ministry official said that gems and jewellery is one key segment
which needs support in terms of lower input cost by cutting import duty.
"There is a proposal to reduce import duty on coloured gem stones and
polished diamonds from the current 7.5%," he said.
The government may also consider raising insurance coverage by the Export
Credit Guarantee Corporation of India for export credit from present 60%. The
move would help banks to provide more credit at lower rates.
Given that the global trade has slumped and a deeper slowdown is being feared,
the government may come up with a comprehensive relief package for the export
sector. The move has also been necessitated due to China depreciating its
currency to gain edge over competitors.
"If some kind of push comes on exports, it will help in overall growth of
Indian economy which is very much required. Support from government will be
welcome and timely," said Ajay Sahai DG & CEO, Federation of Indian
Export Organisations (FIEO).
"The global trade is moderating and once the size of the cake becomes
small competition would intensify. From that perspective any support to export
is welcome," he added.
The government has been trying to make India a manufacturing powerhouse and export
hub by taking fiscal and administrative measures. In line with this, it may go
for measures that will stop diversion of imports through free-trade agreement
Reducing dwell time for export items is another area the government has emphasized.
Suggestions given by exporters to boost the sector include enhancing benefits
of the Merchandise Exports from India Scheme (MEIS) for textile and non-basmati
rice among others.
In order to ensure that working capital of exporters are not stuck, the Centre
has directed revenue department to clear pending refunds in a time-bound