Govt extends export sops as global recovery slows

Commerce Minister Anand Sharma decided to extend sops for the labour intensive export sectors, citing a fragile recovery in the global economy, but sounded confident of achieving the annual export target. India’s plan to offer incentives to exporters will cost the Government Rs10.5bn, Sharma said while presenting the annual supplement to the Trade Policy at a press conference in New Delhi. The Commerce Minister said that the Government intends to extend the DEPB scheme for exporters for six months (or till June 30, 2011) and the zero duty EPCG scheme by a year or till March 31, 2011. He also announced the extension of SHI (Status Holders Incentive) scheme for one more year till March 31, 2011.



India's merchandise exports grew by 32% in the first three months of the current fiscal year from a year earlier, and will touch the target of US$200bn by March 2011, the Commerce Minister said. But, the recovery in exports has so far been fragile and exporters are still facing challenges in the global markets, Sharma said. He also said that India remained committed to successful completion of Doha round of WTO talks. At the same time, discussions are underway for various trade agreements with Malaysia, Japan, EU and ASEAN, he added.