Kamal Nath, minister of commerce and industry, while observing that the exports from tea, rice, marine products, gems & jewellery, cotton yarn, fabrics, made-ups, jute manufacturing, carpets, handicrafts, plastics & linoleum sectors have been affected extensively this year, informed that a number of measures have been taken to help the exporters during the present economic slowdown in export markets through three stimulus packages on the fiscal side as well as through other measures in the banking sector.
Nath announced that the exports of leather and textile sectors would be given incentives of Rs 3.25 billion with effect from April 1, 2009. He also announced export incentives for certain items like technical textiles, stapling machine, handmade carpets and dried vegetables.
In a statement, Chandrajit Banerjee, director general, CII, said, “Announcement of the supplement to the foreign trade policy would go a long way in boosting employment generation in India as the export sector is the second largest employment generator in the country”. He further added, “Textiles and leather sectors in India have been under severe pressure in last few months and the announcement of a special package of Rs 325 crore (3.25 billion) for the two sectors would help in their revival”.
“The removal of import restrictions on worked corals is welcome and addresses the long standing demand of gems & jewellery exporters”, said Sanjay Budhia, chairman, CII National Committee on Trade. He further added that recognition of Bhilwara in Rajasthan as the town of excellence for textiles and of Surat in Gujarat as the town of excellence for diamonds would help in bringing the two regions on a global map.
Extension of Duty Entitlement Passbook Scheme for exporters is also a welcome measure that exporters will cherish, said ASSOCHAM chief Sajjan Jindal adding that the special package for leather and textiles is far below the expectations of India Inc as it is these two sectors that have been worst affected due to meltdown both in terms of production and job losses.