New Delhi: Labour-intensive exporters hit hard by the note ban are in line for sops.
The government may allocate additional sum under export incentive schemes to sectors such as textiles, engineering products and leather, affected by demonetisation.
"We have asked the finance ministry to allocate additional sum to boost exports from labour-intensive sector through MEIS (Merchandise Exports from India Scheme) and continuation of interest subsidy. We have to wait and watch what the finance ministry does," a senior commerce ministry official said.
The MEIS scheme, applicable for the export of specific products and identified markets, are eligible for direct sops in the form of duty-free scrips. The scheme started in April 2015 with an annual budget of Rs 18,000 crore, which was increased in phases to Rs 23,000 crore. The scheme now covers 7,103 items against 5,012, initially.
Sources said the finance ministry was likely to continue the 3 per cent interest subsidy scheme in the forthcoming budget to help exporters tide themselves over the tough global trade environment.
"The scheme was announced in November 2015 and we expect it to continue in this budget also," sources said.
The scheme, called the interest equalisation scheme on pre- and post shipment rupee export credit, is available to all micro, small and medium enterprises and 416 tariff lines. Continuation of the scheme would help sectors such as handicrafts, carpets, tea and rice.
"We are expecting Rs 2,500 crore in this budget from the finance ministry. It is important because the cost of credit is still very high in India compared to global benchmarks. We would urge the Centre to continue with this scheme," Ajay Sahai, director-general of the Federation of Indian Export Organisations, said.
Exporters are pinning their hopes on the budget for fiscal measures which would act as a stimulus to revive the economic sentiment that had seen a short-term impact of demonetisation, said T.S. Bhasin, chairman of the Engineering Export Promotion Council of India.
Source: telegraphindia.com