Government extends export duty benefit to few sectors.

New Delhi: The government has extended export duty benefits to certain labour intensive sectors including textiles and leather, a move that will help boost shipments to markets like the US and the European Union nations.

Export of products of high labour intensity and employment potential would be eligible to avail incentives "at the rate of 2 per cent of free-on-board value of exports," Directorate General of Foreign Trade (DGFT) has said in a notification.

Apparel Export Promotion Council (AEPC) said that the incentive would help in boost exports of garments and leather to countries such as the US and EU.

"The incentive to the products which have the highest employment intensity and potential was the need of the hour. I am sure that this decision would surely go a long way to offset infrastructure inefficiencies and other associated costs involved in manufacturing and marketing of these products," AEPC chairman Virender Uppal said in a statement.

He said that apparel exports are expected to cross USD 15 billion this fiscal.

"It is a well-timed move, which will have the far reaching benefits in terms of boosting the exports. High input costs and slowdown in global markets were adding to the stress," he added.

Federation of Indian Export Organisations (FIEO) too said that the DGFT's decision would help in increasing exports.

During the April-January period of this fiscal, India's exports grew by 5.71 per cent to $257 billion.

However, the country needs about $70 billion in the remaining two months of the fiscal to touch $326 billion. Finance Minister P Chidambaram had said in the Interim Budget speech that India's exports are expected to grow by 6.3 percent to $326 billion in 2013-14.

Source : profit.ndtv.com