Public CompanySectoral package for exporters soon, says Sharma
The Commerce Ministry will announce sops for select exporters in the next few days, contrary to the Finance Ministry pitching for a roll-back of the stimulus packages to the industry.
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"We will take a decision on this (sectoral stimulus) within few days," Commerce and Industry Minister Anand Sharma told reporters here today.
Sharma said his ministry has completed a review of various export sectors, which are still facing problems despite overall shipments turning positive in November.
While the minister did not name the sectors, which would be eligible for the government support, labour-intensive segments like gems and jewellery, leather, engineering and carpets may get sops like tradeable entitlements for duty-free imports, sources said.
While exports have turned positive from November that recorded over 18 per cent, Sharma said he would still be cautious about the uptick. "Recovery is weak...And the pattern is not uniform," he said, adding the growth has come on a low base last year. "I have urged caution...," Sharma said.
The sectoral sops would be given from the Commerce Ministry"s annual Budget allocation, he said.
On the overall demand for the industry for continuation of the stimulus, which included cut in excise duty, Sharma said, "We have to wait until the recovery returns to strong growth."
India"s exports for the eight-month period from April to November are down 22.3 per cent.
Sharma, who met Finance Minister yesterday, said, his ministry has recommendations for the Budget.
Commenting on the export figures for December, he said that it would be encouraging.
However, he said lack of demand in major western markets is still an area of concern.
He said there is a contraction of demand in major western markets which is a matter of concern.