Exports sops may be announced before Budget

Commerce and Industry Minister Anand Sharma on Wednesday said the government will soon announce incentives for labour intensive export sectors, notwithstanding high growth in the shipments during December.

"I do plan to announce export sops to labour intensive sector soon," he told PTI, adding that the ministry has already reviewed the performance of different export sectors.

While the minister did not specify the exact date of announcement of sops, sources in New Delhi said it would be before the Union Budget which will be presented in the Lok Sabha on February 28.

Among others, the textiles sector is likely to get sops, they added.

In the Budget of 2010-11, the Centre had allocated Rs 2,500 crore (Rs 25 billion) for the exporting sector of which about Rs 600 crore (Rs 6 billion) still remains "unutilised".

The Directorate-General of Foreign Trade has conducted performance review of the different export sectors in consultation with various stakeholders.

Last year, Sharma had mentioned that exports would get sops after completion of sectoral review. "Stakeholder consultations are complete and we will have the report when I go back to Delhi," he said.

The minister is currently visiting Italy along with a FICCI business delegation.

He is also scheduled to visit London and return to India on January 5 or 6.

Ever since the global economic slowdown that hit exports in November 2008, the commerce ministry had provided a series of sops to exporters like discounted loans or other tax benefits.

However, with India's export growth touching a 33-month high in December 2010, most sectors are performing well, helped by a recovery in demand in the United States and many  European countries.

December exports went up by 36.4 per cent year-on-year to touch $22.5 billion.