NEW DELHI: The government Friday proposed an increase in budgetary allocation for export promotion schemes to Rs 4,115 crore for 2019-20 with a view to boost the country's outbound shipments.
In the revised budget estimate for 2018-19, the allocation stood at Rs 3,681 crore as against the budgeted amount of Rs 3,551 crore.
The schemes which would get additional funds during the next financial year (April 2019 - March 2020) include market access initiative, national export insurance account, gems and jewellery sector, investment in Export Credit Guarantee Corporation and interest subsidy scheme.
According to the budget documents, funds for interest subsidy schemes was proposed to increase to Rs 3,000 crore in 2019-20 as against the revised budget of Rs 2,600 crore in 2018-19.
The interest equalisation/subsidy scheme for pre- and post-shipment rupee export credit started on April 1, 2015, and will end in March 2020.
The government provides 3 per cent interest subsidy to exporters. It helps enhance the liquidity situation of traders.
During April-December this fiscal, exports grew by 10.18 per cent to USD 245.44 billion.
Since 2011-12, India's exports have been hovering at around USD 300 billion. During 2017-18, the shipments grew by about 10 per cent to USD 303 billion.
Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.
Further the allocation for the department of commerce was proposed to increase to Rs 6,219.32 crore for the next fiscal as against the revised allocation of Rs 6,195.30 for the current fiscal.
Allocations have been increased for special economic zones, Coffee Board, and Spices Board.
However, for certain categories, such as Trade Infrastructure for Export Schemes, Tea Board, Rubber Board, and expenditure on disputes over foreign trade, funds have been proposed to reduce.
Source: economictimes.indiatimes.com