Secretaries' panel to work on relief for exporters

A Committee of Secretaries will soon meet to consider demands of exporters, including increase in interest subsidy and tax refunds, which are given through different schemes such as duty drawbacks.

The committee, headed by Finance Secretary Arun Ramanathan, has been asked to come out with concrete measures within two weeks to help the exporters, hit hard by recession in the US and slowdown in several other markets for the Indian products.

After a high-level government meeting with export promotion councils and commodity boards yesterday, Commerce and Industry Minister Kamal Nath had said there was a case for increase in interest subvention to exporters.

The other issues the Committee will deliberate on include revision in the drawback and Duty Entitlement PassBook (DEPB) rates by an average of three per cent to improve the competitiveness of Indian exporters against their competitors from China, Vietnam and Bangladesh.

Exporters who participated in yesterday's meeting, also attended by Planning Commission Deputy Chairman Montek Singh Ahluwalia, said government did not indicate any "package" but promised to look into some "genuine" issues.

While the government has already announced interest subsidy of two per cent, another two per cent seems likely, they said. "Money for two per cent interest subvention has already been given to the Reserve Bank," an official said.

The Committee, which has the Revenue and Commerce Secretaries also, was announced on January 2 as part of the second stimulus package.

India's merchandise exports, which were showing a growth rate of over 30 per cent in the first half of the fiscal, slipped into negative territory in October. Exports decelerated by over 12 per cent in October and about 10 per cent in November 2008.