Cushioning the adverse impact of declining exports
Shri Kamal Nath, Minister of Commerce and Industry has announced that a number of measures have been taken to help the exporters during the present economic slowdown in export markets through three stimulus packages on the fiscal side and other measures in the banking sector. Some of the measures include provision of interest subvention of 2% till 31.12.2009 for certain labour intensive sectors, additional funds of Rs 1200 crore for CST/ TED /Drawback refunds, extension of DEPB scheme up to 31.12.2009, restoration of DEPB rates for all items at rates prevailing prior to November, 2008, and increase in duty drawback rates on certain items effective 1st September, 2008. Around Rs 2300 crore have been provided through various existing schemes for cushioning the adverse impact of declining exports. In addition, certain measures have been taken by RBI to reduce interest rates and provide liquidity.
He further announced that the exports of leather and textile sectors would be given incentives of Rs 325 crore with effect from April 1, 2009. He also announced export incentives for certain items like technical textiles, stapling machine, handmade carpets and dried vegetables.
Employment oriented sectors like Gems and Jewellery, diamonds and precious metals have been given a special boost. The Export Promotion Council for Gems and Jewellery and Star Trading Houses (in the Gems and Jewellery sector), besides Diamond India Limited, MSTC Limited and STCL Limited have now been added under the list of nominated agencies notified under para 4 A.4 of foreign trade policy for the purpose of import of precious metals.
Surat in Gujarat, which is home to thousands of diamond units with lakhs of diamond workers, has been recognized as “Town of Export Excellence”.
Source: PIB