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| Govt to review export target of $200 bn |
| Press Trust Of India / New Delhi Nov 18, 2008, 00:37 IST |
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With India’s exports getting dented in the troubled US and European markets, the government today said it was working on a fiscal package for exporters and reviewing the target of $200 billion for this fiscal.
“There is a slowdown in the economies in the western world; so there is bound to be slowdown in exports. The Prime Minister’s Committee (set up to handle the global crisis) will review this. We are looking at various measures that can help sustain exports,” Commerce and Industry Minister Kaman Nath told reporters here at the India Economic Summit.
Concerned at the slipover from the turmoil in India’s two biggest markets — the US and Europe — Nath said, “I am reviewing it to see whether our target will be met or not. Till now, we are on track; but the next five months will determine whether targets (will be met).”
While the commerce ministry is pitching for a total tax waiver for exporters both at the Central and state levels, a decision on this will be taken by the committee chaired by Prime Minister Manmohan Singh. “We are working on the package... There are many areas that need to be addressed,” Nath said.
He said there was a case for refunding taxes and levies to exporters so that they can compete in the world market, marked by price under-cutting by exporters from other countries which back them.
“We are going to see how the level-playing field can be provided to our exporters, which means totally waiving duties and taxes,” Nath said.
Exporters seem desperate for inexpensive credit in a liquidity-starved financial market.
“We want post-shipment credit to be extended from 90 days to 270 days. Besides, pre-shipment and post-shipment credit in foreign currency may be made available at LIBOR plus 100 basis points,” said Federation of Export Organisations President Ganesh K Gupta.
The impact of the global financial turmoil was clearly visible in October, when India’s exports declined by 15 per cent. The govt has set a target of $200 billion for the current fiscal in the backdrop of $162 billion in 2007-08.
During April-September, the country registered a growth rate of 30.9 per cent to $94.9 billion. However, several agencies like global consultancy firm Dun and Bradstreet have expressed doubts whether the growth momentum could be sustained.
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