Anand Sharma confident of retaining stimulus for labour-intensive sectors

CHENNAI: Union commerce and industry minister Anand Sharma on Friday appeared confident that the stimulus package would continue for labour intensive sectors, especially engineering goods, leather and garments, which are barely limping back to recovery. His remarks came exactly a week before the Union Budget.

When asked if he had convinced Finance Minister Pranab Mukherjee to retain stimulus in the upcoming Budget, Mr Sharma said Mr Mukherjee was “well-informed and sensitive” to the challenges of Indian trade.

“In some labour-intensive sectors, (government) support will be needed for some more time to come and that is exactly what I have taken up with the Finance Minister, and recommended for his consideration,” Mr Sharma said. However, he added that the government may go in for a ''phased withdrawal'' of support and measures to sectors that have consolidated their growth.

Talking about the overall trade, Mr Sharma said that though exports suffered because of the steep decline in demand in major economies such as US and European Union, the government managed to arrest the decline with its stimulus packages and policy interventions.

“We hope that by the end of the final quarter of the current financial year we will be able to consolidate further and reduce the gap between India's exports to share of global trade in goods and services,” Mr Sharma said.

On whether China’s currency policy was hurting Indian exports, Mr Sharma said Beijing had assured that steps will be taken to address these concerns. He also said that he saw no need to devalue the Indian currency, similar to what China did to Yuan.

Mr Sharma spoke to reporters in Chennai after inaugurating the 17th International Sea Food show, where he assured the fisheries industry that he would push benefits and assistance for fisheries on par with those provided for agriculture.

“I assure my full support in cabinet so that fisheries as such get the same treatment, consideration, support and incentives as agriculture does. The states should also declare it equivalent to agriculture,” he said.