FIEO asks government to review FTP incentives for exporters

NEW DELHI: Expressing concern over declining shipments, exporters body FIEO today asked the government to review the incentives announced in the foreign trade policy.

Federation of Indian Export Organisations (FIEO) President S C Ralhan said the incentives given to exports sector are less than 1 per cent of the country's total exports, which is a "miniscule amount".

Under different schemes, the government has provided incentives worth Rs 17,995.81 crore in 2014-15. It was Rs 14,318.15 crore in 2013-14 and Rs 10,275.5 crore in 2012-13, he said.

The incentives schemes are - Vishesh Krishi and Gram Udyog Yojana, Focus Market/Focus Product/ Market linked Focus Product Scheme, Interest Subvention, Market Access Initiative and Market Development Assistance.

"There is an urgent need to review the benefits announced in the new Foreign Trade Policy to sustain the exports growth in such a situation when global economies are reeling under intense pressure except for few," he added.

He said the percentage of benefits being given should be increased and "if not possible atleast the same may be restored at the same level as earlier".

Ralhan said the reduced export incentives under the Merchandise Export from India Scheme and Service Exports from India Scheme ( SEIS) have hit the exporters badly.

India's exports dipped deeper in the negative zone recording a decline of 21 per cent in March, the biggest fall in the last six years, pulling down the total shipment for 2014-15 to USD 310.5 billion, missing the target.