Sharma to push for DEPB scheme extension with Pranab

Making out a case for extension of the popular incentive scheme, Duty Entitlement Pass Book (DEPB), for Indian exporters, Commerce Minister Anand Sharma today said he will take up the issue with Finance Minister Pranab Mukherjee on his return to New Delhi.

"I am one who is not subscribing to this view that our exports have reached a stage where we can do away with some of the incentives...I am going to discuss DEPB and interest rates with the Finance Minister," Sharma told PTI here.

He said the issue would be taken up with the Finance Minister after his return to New Delhi. Sharma is here in connection with India-Africa Forum Meeting.

With the country's exports registering an impressive growth of 37.55% in FY11, the Finance Ministry is not in favour of any more extensions to the tax rebate scheme, DEPB.

The Indian government spends annually about Rs 8,000 crore reimbursing exporters the taxes paid on import content of export products.

The DEPB scheme is due to end on June 30, but exporters are lobbying hard with the Commerce Ministry which is pursuing their case with the Finance Ministry.

India has to look at ways and means to keep the exports high because the share of the country's shipments in the global merchandise trade is low, he said.

"There has to be a cushion. The cushion can only be by increasing exports. How do we increase exports? How do we make up trade deficits? These are concerns which I will be discussing [with the Finance Minister]," he added.

India's exports went up by 37.55% year-on-year to $245.86 billion during FY11.