Govt to announce a package for exporters that will rejig incentives, address problems related to foreign currency credit, rising rates of interest

The government will soon announce a fresh package for exporters that will rejig incentives and address problems related to accessing foreign currency credit and rising rates of interest. 

"Global conditions have changed, budgets have changed and interest rates have changed,"commerce secretary Rahul Khullar said addressing a press conference, adding that the new package will have to incorporate all these changes. 

He said there might be sectors that do not need incentives any more and others that might need it now. "For instance, we had removed benefits for onions and eggs some time back. We might look at the need to restore it," Khullar said. 

Similarly, benefits may be taken away for exporting to certain markets and introduced for new markets. "Textiles was given incentives for six months to export to certain markets. We could look at extending the period and targetting other markets," he added. 

Rising interest rates is another problem that the commerce department wants the package to address. While Khullar did not elaborate, it could mean that discount on interest rates given to exporters of certain goods could be reintroduced. 

The commerce department will also try and sort out the problem being faced by exporters in accessing foreign currency denominated credit. "There are instances when banks stop giving credit in certain foreign currencies leading to huge problems," Khullar said. 

Despite exports performing well, the commerce department is pushing for a package as it fears that the current uncertainty in the Euro zone and the budgetary problems being faced by the US could make things tough in the months to come. 

Commenting on the falling rupee, the secretary said that it would certainly result in higher earnings for exporters, but they should not get too "greedy''. The only way to deal with the volatility in currencies is to hedge, and more exporters should resort to it, he said. 

Briefing the media on the current state of affairs at the World Trade Organization, Khullar said that the US and some other countries were attempting to introduce new issues that they termed as 21st century issues' that was being opposed by many countries, including India. 

The issues include climate change, currency, energy security and food security. "Since these issues do not have the backing of trade ministers, it is a clear violation of how WTO works," Khullar said.

Share this:
Tags:

About Jessica Priston

Ut tellus dolor, dapibus eget, elementum vel, cursus eleifend, elit. Aenean auctor wisi et urna. Aliquam erat volutpat. Duis ac turpis. Integer rutrum ante eu lacus. Vestibulum libero nisl, porta vel, scelerisque eget, malesuada at, neque. Vivamus eget nibh. Etiam cursus leo vel metus. Nulla facilisi. Aenean nec eros.

  • Website
  • Google+
  • Rss
  • Pinterest
  • Instagram
  • LinkedIn
  • Vimeo
  • Youtube
  • Flickr
  • Email

Related News

  • Cashback site Cashkaro now offers restaurant discounts

    India’s e-commerce market looks large and lucrative enough from the outside, but insiders know it is very challenging. In fact, the number of e-commerce sites and businesses is growing so fast here today that the competition is cut-throat. This

  • What is Viscose Material? Advantage and disadvantage of viscose.

    Viscose is a unique form of wood cellulose acetate used in the nnmanufacture of a number of different products. This includes items for nnthe medical industry, though it is perhaps most common as a major nningredient in the production of the fabric r

  • Honda launches new CBR 250R bike
    Honda launches new CBR 250R bike
    July 01, 2014 5:50 am

    New Delhi: Honda Motorcycle & Scooter India (HMSI) launched a new edition of its global sports performance bike CBR 250R priced between Rs 1.56 lakh and Rs 1.86 lakh (ex-showroom Delhi). The 2013 edition CBR 250R is available for sale across a

  • Zara has opened store at Ambience mall, Gurgaon

    Zara, has opened its new store at Ambience mall, Gurgaon. Spread over 28,000 sq.ft. across two floors the store has taken the space earlier occupied by Debenhams. With this Zara now has twelve stores in India. It is present in 86 countries with