New Delhi (PTI): Finance Minister Pranab Mukherjee on Tuesday met exporters, a day after the release of the April export data which showed the sharpest fall in overseas shipments in 14 years, assuring them he would do his best in the Budget.
Heads of eight export promotion councils (EPCs) and the Federation of Indian Export Organisations (FIEO), in turn, promised to take exports to the USD 200 billion level this fiscal if their demands are met.
"His (Mukherjee's) response was very positive. He clearly said that we (government) understand the problem ... are very sensitive to the problem ... will do the best in the Budget," FIEO President A Sakthivel said quoting the Finance Minister.
Secretaries in the Revenue, Expenditure, Finance and Commerce Department as also Chief Economic Adviser Arvind Virmani were present in the meeting.
The country's merchandise exports barely grew by 3.4 per cent to USD 168.70 billion, hit by drastic decline in the second half of 2008-09 due to the global downturn. But the shipments have been dropping for the past seven months in a row costing five million jobs, as per FIEO estimates.
Commerce Secretary G K Pillai who has been batting for exporters, said, "He (Finance Minister) will take appropriate decision at the right time".
Mr. Mukherjee on Monday held pre-Budget consultations with industry leaders. He had said that Budget would be presented in the first week of July.
Exporters, hit by demand slowdown in major markets of the US and Europe, are demanding income tax holidays for five years, exemption from fringe benefit tax and service tax in the Budget.
They are also demanding export credit at 7 per cent rate of interest and setting up of a Rs 5,000 crore market development fund.
Mr. Sakthivel said the Finance Minister was also apprised of the job losses in the sector.
"We said job losses are there and because of the minus growth rate in exports further job losses will be there...," he said.
The industry, however, is trying to contain the workforce by trimming on shifts, he added. Indian exports sector employs about 5 crore people.
Meanwhile, different export promotion councils and FIEO would also be meeting Commerce Minister Anand Sharma on Wednesday in connection with the new five-year Foreign Trade Policy to be unveiled in August.
Source : The Hindu