More export sops on way
Commerce minister Kamal Nath today said the government was exploring the possibility of more relief to exporters. "The proposals involve remission of duties. We have already floated a cabinet note in this regard. The proposals are with the Prime Minister now," Nath said on the sidelines of an industry event.
The rising rupee has battered exporter margins, and the finance ministry has raised tax refund rates, cut interest rates and reduced some import duties. Nath, however, said more needed to be done in refunds and he had written to Prime Minister Manmohan Singh. "We must have complete remission and refund of duties." Sources said the minister wanted ad hoc increases in reimbursement rates under the duty entitlement pass book scheme and the duty drawback scheme, the full reimbursement of service tax as well as reimbursements of state taxes and levies.
Nath's demand for more relief comes within days of finance minister P. Chidambaram ruling out such measures.
In the mid-term review of the economy last week, Chidambaram said in the medium and long terms exporters must improve their productivity and become more competitive.
Exports in October were up 35.7 per cent to $ 13.3 billion, while imports increased 24.3 per cent to $ 20.79 billion.
SEZ cap
Nath said the government was not considering any proposal to lift the cap of 5,000 hectares on land for special economic zones.
Only last week commerce secretary G.K. Pillai had said the government was weighing the option of relaxing the cap.
However, the government would look at specific proposals from states once the land rehabilitation policy was in place. "There cannot be a one-size-fits-all policy for all the states," Nath said
Europe FTA
Austria today asked India to speed up the free trade agreement with the European Union. After meeting Nath, the Austrian minister for commerce and labour Martin Bartenstein said the agreement would enlarge the markets for each other's products
Source: The Telegraph
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