NEW DELHI: The Ministry of Commerce and Industry is likely to extend incentives to certain export sectors, such as engineering products, leather, gems and jewellery, which have seen shipments shrink over the past six months.
A ministry official said, “We’ve started a review of key export sectors that will be completed November-end. Based on that, we may announce some incentives to boost exports of products for which shipments have been declining.”
The commerce department’s budget allocation is Rs 1,673 crore for the current financial year. “We will consider ways to make exports fromIndiacompetitive by offering incentives that are not performing well in particular markets,” the official added.
Concessions would, however, have to be done in accordance with World Trade Organization norms, which state a country cannot extend subsidies to a sector in which it has already attained a share of 3.25 per cent of global trade.
In textiles, for instance, though exports have been under pressure,Indiahas an over four per cent share in global trade.
Ajay Sahai, director general, Federation of Indian Export Organisations, said: “Exports have not been encouraging in October as well. The issue is that some of the concessions announced in the Foreign Trade Policy (FTP) in June have not been implemented by the finance ministry.”
For instance, he said, it had stated the scope of the zero duty export promotion capital goods scheme would be enlarged and exports via e-commerce were to be given FTP benefits. These had not happened.
Contracting global demand hit exports for a fifth month, declining 10.8 per cent to $23.7 billion in September.