Exporters seek incentives to boost shipments

Concerned over decline in the country's exports, apex exporters body FIEO today asked the Finance Minister to announce some incentives, such as creation of a development fund for aggressive marketing of products, in the forthcoming Budget to boost overseas shipments.

The body also asked for refund of state levies like VAT, sales tax on petroleum products, Octroi and electricity duty.

"This will provide 2-3 per cent benefit to exporters particularly those dealing in commodities," Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said in a statement.

He said that for promoting investment in manufacturing, weighted deduction for expansion and modernisation of exporting units could also be given to exporters.

Further, he suggested that the government should extend investment linked incentives for Towns of Excellence identified by foreign trade policy for setting up of common facilities/infrastructure/effluent plants.

During April-January of 2012-13 fiscal, India's overseas shipments have shrunk by 4.86 per cent to USD 239.6 billion.

Finance Minister P Chidambaram is scheduled to present the Union Budget, 2013-14 on February 28.