FM assures help to rupee-hit textile exporters
Finance Minister to take comprehensive view of suggestions submitted by the textile exporters and work out measures to help them tide over Re appreciation.
By PTI |
NEW DELHI: Finance Minister P Chidambaram on Thursday assured exporters from the textile sector that the government would look into their grievances and work out "concrete measures" to help them tide over the crisis arising out of rupee appreciation.
Export Promotion Council for Handicrafts Executive Director Rakesh Kumar told reporters after Finance Minister's meeting with exporters and bankers, "the Minister was very positive and has assured us that the government would come out with concrete steps to help exporters hit by an appreciating rupee."
"The Minister has given us hope and has asked us to work hard and wait for the government to formulate steps," he said.
According to Canara Bank Chairman and Managing Director M B N Rao, who was also present at the meeting, the Minister would consult other departments and take a comprehensive view of the suggestions submitted by the textile exporters.
Textile exporters, who are among the worst hit by rupee appreciation, have demanded an increase in duty drawback rates, reduction in interest rates for pre and post shipment credit as well as exemption from service tax.
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"The rupee appreciation has severely dented the profitability of textile industry. We are not only losing market share but also large number of jobs," Cotton Textile Export Promotion Council Chairman Prem Malik said.About 8 lakh artisans in the handicrafts sector may lose their jobs if adequate measures are not taken, Kumar added.
"Service tax exemption still does not include items like marketing and participation in exhibitions and fairs abroad. While the government should include more services from tax exemption, we have asked for five per cent duty free scrips on handicrafts items," Kumar added.
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