The commerce department may review all the export incentives after the forthcoming Union Budget 2010-11, in order to allocate the resources more competently in the new fiscal year.
“Once we know the funds that the finance ministry is willing to sanction to us for the next fiscal, we will work out which are the sectors where our support should continue and where it could be possibly withdrawn.” said an industry official.
“Once we know the funds that the finance ministry is willing to sanction to us for the next fiscal, we will work out which are the sectors where our support should continue and where it could be possibly withdrawn.” said an industry official.
The finance ministry is supposed to take a call on continuing the various interest rates or discount on loans for a few chosen export sectors. In December 2008, government had supported few recession stricken export sectors with perks like interest rate subvention, enhanced monetary allocation towards export incentive schemes, guaranteed back-up etc.
Most of these incentives were continued in 2009-2010 fiscal, but now the government has to withdraw the stimulus package in order to control the fiscal deficit. Though the exporters feel that it wouldn't be sound to withdraw stimulus at the current stage since the growth in the western market could be momentary.
Most of these incentives were continued in 2009-2010 fiscal, but now the government has to withdraw the stimulus package in order to control the fiscal deficit. Though the exporters feel that it wouldn't be sound to withdraw stimulus at the current stage since the growth in the western market could be momentary.
