Government may extend sops to exporters in Foreign Trade Policy

NEW DELHI: The government may announce sops for sectors such as engineering and carpets in the forthcoming Foreign Trade Policy (FTP) to provide them cushion against the global slowdown.

"We can expect more measures in the FTP. We are working on the FTP," Commerce and Industry Minister Anand Sharma told reporters here.

During the April-February period, exports declined by 4 per cent to $ 265.95 billion. Sectors like engineering and textiles are registering negative growth. These segments are likely to get some sops in FTP.

Sharma said that the Commerce Ministry is in consultation with all the stakeholders including industry chambers for the policy.

The high-level Board of Trade (BOT) chaired by Sharma is scheduled to meet on March 22 to review India's export performance in the wake of uncertain economic conditions in Western markets. The BoT is an advisory body of the Ministry.

"We had two rounds of consultation with the CII and FICCI. Now, we would have another round of consultation with exports council and FIEO. We will wrap up the consultation process and then start working to get the final shape to the FTP," he said.

According to sources, exporters are likely to get benefits under focus product and focus market scheme. Special Economic Zones, which contribute about 30 per cent in the country's overall exports, are also expected to get incentives.

The incentives would help in boosting exports and bridging the widening trade deficit, which has touched $ 182.1 billion in the 11-month period of the fiscal.

Last time, in December 2012, the government had announced incentives for exporters that include extension of two per cent interest subsidy for one more year till March 2014.

Sharma had also introduced a pilot scheme of two per cent interest subsidy for project exports through Exim Bank.

Despite the sops, it would be difficult to achieve the $ 360 billion export target for this fiscal. The country's overseas shipments are likely to be below $ 300 billion.

In 2011-12, the exports were aggregated at $ 307 billion.