The government indicated on Thursday that some big concessions could be given to highly employment generating sectors for exports in the forthcoming budget.
"Some bold steps could be taken for the highly employment generating sectors," Finance Minister P Chidambaram said when asked if tax concessions could be given to exporters in the Budget for 2007-08.
Asked about what those concessions could be, he said: "Wait for the presentation of the budget". Although he did not say specifiy the sectors, officials said textiles and garments, gems and jewellery, and leather among others could benefit.
The government was alive to the exporters' demands, many of which have been accomodated in the past and some of them have been internalised in the system, Chidambaram said after a meeting with various Export Promotion Councils here.
"We will continue to do so (to consider the demand of exporters) while keeping the interests of exporters, domestic industry and revenue in mind," the finance minister said.
Commerce Minister Kamal Nath, who also met the councils, agreed with Chidambaram.
Nath said the country's capital goods industry needed protection and interests of exporters had to be balanced with those of the domestic industry. He said the country's exports were doing well and were much ahead of targets.
"Some useful suggestions have been given by the councils that would be looked at and examined," Nath said.
