The Hindu : Business : Sector-specific package for exporters likely

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Tuesday, Oct 23, 2007
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Sector-specific package for exporters likely

Staff Reporter

Ministry to present a Cabinet note for expanding coverage of refunds

— PHOTO: R. V. MOORTHY

PAYING SPECIAL ATTENTION: Union Commerce and Industry Minister Kamal Nath addressing a meeting of representatives and stakeholders of the plantation sector in New Delhi on Monday.

NEW DELHI: The Union Commerce and Industry Minister, Kamal Nath, on Monday said his Ministry was planning to introduce a sector-specific package for exporters regarding refund of taxes and levies to help them counter losses owing to the rise in rupee value. He also denied any scaling down of the export target of $160 billion for the current fiscal.

Speaking to presspersons before an export review meeting, Mr. Kamal Nath said his Ministry would soon present a Cabinet note for expanding coverage of refunds to exporters so that they get a level-playing field and counter the impact of appreciating rupee. In July this year, the Government announced a Rs. 1,400-crore package for exporters exempting seven items from service tax.

The Minister also said that despite strengthening of the rupee vis-À-vis the dollar, India would be able to meet the export target of $160 billion for 2007-08. “We will be holding an overall export review meeting with different export promotion councils in November this year,” he added. Mr. Kamal Nath said that to boost exports, India and the European Union were negotiating a free trade and investment agreement aimed at phasing out and eliminating import duties on a large number of trade items. Addressing the review meeting, he called for replantation and rejuvenation of plantation crops as 15 per cent of the total agricultural export earnings come from crops such as tea, coffee and rubber alone. Mr. Kamal Nath said that to enhance the quality of products, the government had decided to set up spices parks at six places — Idduki, Guntur, Rai Bareli, Erode, Kota and Chhindwara. Reacting to the demands of industry representatives, the Minister agreed to look at the possibility of having a special risk policy for tobacco exports and having a specialised institute for spices technology for coordinated research and market intelligence efforts.

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