"It is unlikely the Budget will have anything to offer to the export community this financial year," a senior commerce department official told Business Standard, adding it had presented an extensive wish list to lift the country's merchandise exports, which had been having a poor run since the second half of the financial year.
Officials have stated the finance ministry is also contemplating doing away with some of the key export promotion schemes, to check revenue leakage -- such as the advance licence scheme and export promotion capital goods scheme.
Last year, the revenue forgone on account of these two schemes stood at Rs 25,795 crore (Rs 257.95 billion) against Rs 17,109 crore (Rs 171.09 billion) in 2009-10.
The government had foregone Rs 58,590 crore (Rs 585.9 billion) in 2010-11 in revenues due to export promotion concessions against Rs 43,375 crore (Rs 433.75 billion) a year ago.
Ramu S Deora, former president of the Federation of Indian Export Organisations and chairman of Mumbai-based G Amphray Laboratories, said: "The rupee has already breached the 50-level mark, cost of inputs has touched the roof, things are not looking good at all. We have little hope that the Budget will offer anything significant.
"Today, the biggest problem is revenue constraints and a massive subsidy burden that the government is facing. I believe the government should remove the advance licence scheme and EPCG scheme as they benefit only the big trading houses."
Indian exports have been seeing severe downturn since August last year on account of the euro zone crisis and demand slowdown in the US: The regions account for around 30 per cent of India's goods export basket.
"All eyes are now on the Foreign Trade Policy," said a Bengaluru-based exporter who did not wish to be identified.
Last month, FIEO had urged the Finance Ministry to consider extending interest subvention of more than three per cent to all sectors till March 2013.
Interest subvention is now given to exporters in handicrafts, handlooms and carpet sectors.
It has also demanded exemption of service tax on currency conversion for export.
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