Union Government Announced More Incentives to Exporters Hit By Global Meltdown

The union government on 26 December 2012 announced more incentives for the exporters who were hit hard because of global meltdown.  An extension of 2 percent interest subsidiary would be provided for another year till March 2014.

Additionally, the Commerce and Industry Minister Anand Sharma decided an introduction of pilot scheme of 2 percent interest subsidiary for those project exports that took place through Exim Bank.

Any incremental export which would be done in the time duration of January to March 2013 would also be granted incentive. The ministry announced that the incentives would enable to push the exports in last quarter of 2012-2013 fiscal year.

The objective of these incentives was stabilisation of the situation as well as shift from the negative territory to the positive one. Another objective of the incentives was keeping trade deficit under the control.

Exports during the period of April-November 2012 shrunk by 5.95 percent to 189.2 billion. If the situation continues, it would be very difficult for India to achieve export target of 360 billion dollar in 2012-2013 fiscal year.