Certain segments of export sector are likely to enjoy extended fiscal incentives in the Union Budget 2010-11. The forthcoming Union Budget 2010-11 is likely to continue with most of the fiscal incentives extended for various segments of export sector.
Finance Minister, Pranab Mukherjee, is likely to continue with most of the fiscal incentives for exporters given the loss of strong recovery in demand cycle in west. The Commerce ministry has already briefed the Finance Minister about the export industry's acute need of stimulus packages.The Unit of Internal Assessment (UIA) of the finance ministry is said to have advocated the continuation of stimulus packages for export sector, specifically for the segments, which are yet to show the signs of recovery.
The forthcoming union budget might extend the two per cent interest subsidy on export credit for another six months, but only for few chosen segments.
