Exports down 1.76% to $300 bn in FY13

Trade deficit for FY12-13 is at $190.91 bn from $183.4 bn previous fiscal

India's exports during 2012-13 declined by 1.76% to $300.6 billion mainly on account of slowdown in the global economy, Commerce and Industry Minister Anand Sharma said here today.

The declining exports have also pushed up the trade deficit during the fiscal to $190.91 billion from $183.4 billion in the previous financial year, he said while addressing a press conference to announce the annual supplement to the Foreign Trade Policy (FPT).

The decline in exports has been on account of global slowdown and negative growth in sectors like engineering and textiles.

Exports had stood at $307 billion during 2011-12.

The government had fixed an export target of $360 billion for 2012-13, which had been missed by a wide margin.

In order to encourage exports, Sharma announced a host of steps including extension of the zero-duty export EPCG scheme beyond March 2013.

The Export Promotion Capital Goods (EPCG) scheme, which is a major incentive programme of the government, would be available to all sectors, the Minister said.

Besides other schemes, the Minister also announced incentives for Special Economic Zones (SEZs) to encourage exports.

The minimum area requirement for SEZs has been reduced to fulfill the contiguity norms. For multiproduct SEZs, the minimum area required now is 500 hectares from 1,000 hectares. For sector specific SEZs, the minimum area required now is 50 hectares from 100 hectares while for IT SEZs, the developers will have to meet minimum built up area criteria.

Since SEZs do not have an Exit Policy, it has now been decided to permit transfer of ownership of SEZs units, including sale, Sharma said.

The 2% interest subvention has been extended to 134 sub sectors of engineering sector.

Norway & Venezuela have been added to Focused Market Scheme while engineering, pharma & textiles have been added under Focused Product Scheme.

Government will undertake a mid-year review by the middle of this fiscal of the export sector and will come up with another set of measures, Sharma said.

The free trade agreements (FTAs) have helped India in increasing its exports such as with Asean, Japan, Korea & Malaysia, the minister added.

Sharma said negotiations with EU have been progressing well. Both sides have given a clear mandate to bringing it to a meaningful closure, which will be balanced, he added.