Budget 2013 steps to boost product competitiveness, exports

NEW DELHI: Welcoming the steps announced in the Budget for export sector, Federation of Indian Export Organisations (FIEO) on Thursday said the initiatives will boost shipments of segments like textile carpet and handicraft.

FIEO President Rafeeque Ahmed said various measures announced for strengthening infrastructure will further facilitate exports.

Finance Minister P Chidambaram in his Budget speech for 2013-14 proposed to set up apparel parks, abolition of excise duty on carpets and textile floor coverings, reducing customs duty on machinery for leather goods and reduction of import duty on precious and semi-precious stones.

"These initiatives will add to competitiveness of these sectors thereby their exports," Ahmed said in a statement.

However, he said that the Budget has not addressed the issue of cost of credit and aggressive marketing initiative required at this difficult time.

He hoped that the Finance Minister will liberally consider such demand when Foreign Trade Policy would be announced next month.

During April-January 2012-13, the country's overseas shipments shrunk by 4.86 per cent to USD 239.6 billion. Trade deficit widened to around USD 20 billion in January, the second highest figure ever in a month.