The commerce ministry has announced a five per cent hike in duty entitlement pass
book (DEPB) and duty drawback rates to help exporters ride out the impact of a
the interest rate on pre- and post-shipment credit would also be brought down
to 6 per cent from the current 9-11 per cent range.
Export Credit and Guarantee Corporation (ECGC) will also be made to cut its premium
rate by up to 10 per cent.
commercial banks will also be asked to meet the 15 per cent export credit disbursement
the two-part measures, commerce minister Kamal Nath said some measures will be
taken up with the finance ministry for early implementation while others will
be implemented by the commerce ministry.
commerce ministry has also urged the finance ministry to notify the service tax
exemptions and refunds announced in the annual supplement to the Foreign Trade
Policy this year, he said.
on the sidelines of a meeting with a delegation of the Federation of Indian Export
Organisations (FIEO) and the export promotion councils to discuss the impact of
the sudden rise of the rupee on exports, Nath said the commerce ministry will
clear all the arrears from reimbursements of terminal excise duty and central
sales tax by the end of this month.
said a committee would be set up with representatives from the ministries of commerce,
finance, labour and textiles as well the directorate general of foreign trade
and the Indian Institute of Foreign Trade to assess the job losses and the loss
of exports caused by the appreciating rupee over twelve months. The committee
will be asked to submit its report in a month.
exporters, however, felt the government should intervene to check the upward spiral
of the rupee against the dollar.
the squeeze on their margins, exporters fear there will be widespread loss of
jobs across sectors. "If the rupee appreciates further,
unemployment will go beyond government control. Around 4 to 5 million people have
lost their jobs in the past 3 months alone," G K Gupta, president, FIEO,
said it is unlikely that exporters could meet the FY08 export target of $160 billion.