Exporters to get help in Budget: new Com minister

The government will unveil measures in the Budget for helping exporters who are hit hard by recession in the developed economies, new Commerce and Industry Minister Anand Sharma said today.

"We shall look at the possibilities for more incentives. I will be discussing with the Finance Minister...Some measures which will be announced in the next Budget," Sharma told reporters after taking charge of the twin portfolio of the commerce and industry.

He would soon be interacting with the trade and industry bodies to assess the difficulties faced by them. "Whatever is required would be done in the coming weeks and months," he said.

However, Sharma ruled out a "comprehensive review" of the controversial amendments in the Foreign Direct Investment (FDI) policy unveiled by his predecessor Kamal Nath in February. 

"I see no reason why a comprehensive review is required at this stage. Let's see how it functions," he said.

Sharma, 56, who was the Minister of State for External Affairs in the previous government, said India would seek greater global economic engagement.

Negotiations for the market-opening free trade agreements with ASEAN and South Korea along with a new India-Nepal treaty have been completed. "We shall be taking all this to Cabinet soon," he said.

India's exports, which had clocked a healthy growth of over 30 per cent in the first half of 2008-09, entered into the negative zone in October 2008.

The country's exports managed to show a meager growth of 3.4 per cent in 2008-09 aggregating $168 billion.

The declining output of the manufacturing sector pulled down the economic growth rate in the fourth quarter of 2008-09 to 5.8 per cent and 6.7 per cent in the entire fiscal.

Sharma said the government had announced stimulus packages which has has helped. "There are promising signs of revival of our industry."

He said additional steps to facilitate exports, including reduction in transaction costs, would be announced in the forthcoming foreign trade policy, which will be unveiled in August.

Expressing concern on the plantation sector, the minister said the government would soon announce a relief package for them.