A Bid to Boost Indian Exports

Supplementing the foreign trade policy for 2009-14, the Commerce Ministry has announced incentives for ` 800 crore to boost Indian exports. How much would this benefit the Indian textile exporters?

The Ministry of Commerce has recently announced an incentive plan worth ` 800 crore to enhance Indian exports. The proposed incentive plan covers up to 50 products and provides a duty credit of 1% on the total exports. This would be useful for exporters to offset their import duty payments. With a view to increase competitiveness in regions of Latin America, Asia and Africa, a market scheme with a special focus has been introduced covering 41 countries in these regions. Cuba and Mexico are newly added to the list.

While talking to the media persons, Commerce and Industry Minister Anand Sharma said, "The cost of credit has been a matter of very serious concern to the industry. It has gone up considerably high, which is making the Indian manufacturing output much less competitive globally. There is also the weakening of rupee and the exporters which had booked orders are facing new challenges because there have been holding up of orders because of the global slowdown".

While India is losing its export market with the EU and US, Asian countries offer good prospects for Indian exporters. Exports from India to US and EU have declined to 30% during 2010-11, from 40% during the previous years. Shipments from India to other Asian countries have increased from 47% during 2005 to 54% during 2010-11 indicating a positive trade prospect with Asian countries. The director general of foreign trade Mr. Anup Pujari believes that this move of the Government would facilitate Indian exporters to capture new and profitable markets.

Items in India's export basket:

The current declaration of the Government is expected to be a good move at the time when merchandise trade is shifting in favor of developing economies. Traditional items such as textile, jewellery, gems, leather, and farm products make up with export basket of India. Along with this, engineering, and electronic goods are also in the rise.