Govt extends sops to exporters; says global recovery fragile

The government today said the sops would continue for exporters in sectors like capital goods and textiles to help them mitigate the impact of "fragile" recovery of global economy.

Announcing the annual Foreign Trade Policy, Commerce and Industry Minister Anand Sharma said that recovery in global economy so far has been fragile and uneven.

"Whatever recovery has been there is stimulus-fed and stimulus-led," Sharma said, adding that it was posing challenges to Indian exporters.

Aiming to provide some relief to exporters hurt by global slowdown, Sharma announced extending DEPB (Duty Entitlement Pass Book) scheme for six months or till June 30, 2011.

Under this scheme, the government reimburses duties on imported inputs used in exports.

Sharma also announced extension of zero duty EPCG (Export Promotion for Capital Goods) for one more year, that is till March 31, 2011, and SHI (Status Holders Incentive) scheme for one more year till March 31, 2011.

At the same time, Sharma also said that India remained committed to successful completion of Doha round of WTO talks.

He noted that the efforts were continuing to cut down the export transaction costs and discussions were on for various trade agreements with Malaysia, Japan, European Union and Asean nations.