As signs of global slowdown stare at Indian exports, the government today announced export incentive schemes. Commerce and Industry Minister Anand Sharma, in an interview with Indivjal Dhasmana, said even depreciating rupee does not help exporters as they are sitting on huge inventories as importers are not lifting orders in many cases. Edited excerpts:
What will be the revenue implications of the measures announced today to promote exports?
I am not quantifying the numbers. How much credit the industry and exporters will take from the banks, how can interest subvention of two per cent be quantified? It could be Rs 900 crore, it could be Rs 2,000 crore.
Nobody can quantify. Same is the case with exports. When there are certain incentives, which are put in place, special bonus scheme, special focus market schemes, it will all depend on final export numbers. I am not going to get into at this stage speculating the revenue implications.
Will your ministry bear the burden of the measures from the allocated funds or will it ask for more?
I have not announced anything which I have not already been allocated or which is not in my hand.
Yesterday, the commerce secretary had said meeting $300 billion for this financial year would be in the striking range, given the trend of exports in first six months of this financial year. How much would these measures add to that number?
I am not a person who indulges in speculation. It depends. I can’t say that the slowdown will be there in December or January. Even if it improves in last two and three months, I am sure we will cross $300 billion target, which is our objective.
Why were textiles given incentives only when exported to US and European Union?
Well, we don’t have the resources. The finance minister has a lot of constraints and I have to work with him.
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Exporters will also be helped by depreciating rupee, was that taken into account while announcing the steps?
Don’t expect that weakening of Indian rupee will benefit India’s trade performance.
(Depreciating rupee) can help in a very limited way, where one-year-old orders are there, and they are honoured.
Because of the crash, in many cases importers are not honouring, they are not lifting orders.
Our industry exporters are sitting on huge inventories. Also, one must not overlook the fact that when you are doing value-added exports, you are importing in dollars.