Sops for laggard export sectors likely on Aug 23

Apprehending slowdown in exports in the coming months, the government is likely to announce additional sops for laggard sectors like textiles and handicrafts, in its Foreign Trade Policy (FTP) review on August 23.

Sources in the Commerce Ministry said that a fiscal incentive package to help laggard export sectors like textiles and handicrafts was being worked out.

Commerce and Industry Minister Anand Sharma will announce the supplement to the export import (exim) policy here, an official statement said.

The policy review will be part of the FTP for 2009-14, which was announced in August 2009.

India's export growth moderated in July to 13.1 per cent due to weak consumer demand in its key markets such as the US and Europe as well as fading base effect, or relatively high comparable figures of the same month last year.

In July, handicrafts exports contracted by 60 per cent, rice by 45 per cent, tea by 25 per cent, ready made garments by 23 per cent and electronics products by 20.8 per cent.

Commerce Secretary Rahul Khullar yesterday said India's exports in the remaining months of 2010-11 would shrink due to demand contraction and rollback of stimulus in the developed world.

"There is going to be a slowdown in the world in the next six months that would translate into contraction in aggregate demand of our exports," he said.

However, the commerce ministry expects India would be able to achieve the export growth target of $200 billion in 2010-11. Due to the global demand slowdown, exports were affected and totalled only $182 billion in the last fiscal.