More Sops For Exports in Mid-Jan: Sharma.

NEW DELHI: The government will announce more sops in mid-January for the export sectors that continue to languish in the global market, commerce and industry minister Anand Sharma has said. Consultations between the commerce department and various export sectors are over and inputs are now being analysed.

"In the first half of January, further interventions will be made and we will announce more incentives for sectors that need it," Mr Sharma said addressing reporters.

Industries that might receive fresh incentives include carpets, tea, textiles, leather, handicrafts and some engineering goods, although exports from many of these sectors have now started to grow.

The commerce department has lavished a series of sops on exporters, especially labour-intensive ones, ever since the global economic slowdown hit the country's exports in November 2008. While most exports sectors have now come out of the red with a recovery in demand in the US and many European countries, some sectors still remain vulnerable.

Commerce secretary Rahul Khullar and director general of foreign trade Anup Pujari had detailed talks with various export promotion councils and other export groups on their present situation and future prospects.

The input received will now be analysed to decide which sectors need more incentives. Exports grew a robust 26.8% in November 2010 to $18.9 billion, while overall exports in the first nine months were 26.7% higher at $140.3 billion. Most sectors have now returned to the growth track except for tea and handicrafts. Exports of ready-made garments are also marginally lower as compared to the previous year.

Commerce secretary Rahul Khullar had earlier said that total exports this fiscal would be between $ 210-215 billion, higher than the target of $200 billion. The minister said that the country was well on its way to doubling trade by 2014 from levels attained in 2009-10.

India's exports were down 4% to $177 billion in 2009-10 from $183 billion in 2008-09.

Incentives given to exporters include loans at discounted rates and duty free import scrips that can be sold in the market for cash.

These are for export of designated products to identified markets.

All the present incentives are valid till the end of the fiscal and there won't be a change in their status, an official clarified.

Source : economictimes.indiatimes.com