Exporters to get more incentives in FTP

The government today said it will look at providing more incentives to the exporters, battling demand recession in the major markets of the US and Europe, in the Foreign Trade Policy (FTP) to be unveiled in August.

Commerce and Industry Minister Anand Sharma said that the Finance Minister, Pranab Mukherjee, has accepted most of the recommendations made by the ministry like extension of interest subsidy, insurance scheme till March 2010 and abolition of Fringe Benefit Tax in the Budget presented today.

He said announcements made in the Budget are important decision which would have a positive impact on exports in the months to come.

Sharma said there may be more incentives for exporters in the Foreign Trade Policy (FTP).

"...When it (FTP) comes out I hope that there will be a vision, there would be incentives which would help in short term or in the immediate term," he said.

He, however, did not disclose any further details.

After registering a handsome growth rate of over 30 per cent in the first half of the current  fiscal, India's exports entered the negative zone in October 2008. In the previous fiscal, the overseas shipments grew barely by 3.4 per cent to $168.7 billion.

Sharma said the ministry would review India's export performance by the year end.