The commerce and industry ministry may withdraw incentives offered to certain export-oriented industries and reallocate these to the sectors that are struggling for survival after a review in April.
“...Decision for any kind of change in stimulus measures for the sectors coming out from the impact of the global financial meltdown will be taken after March 31,” Minister of State for Commerce and Industry Jyotiraditya Scindia told reporters here at a function organised by the Associated Chambers of Commerce and Industry of India.
While tobacco, spices, man-made yarn, gems, chemicals and jewellery have shown satisfactory export growth in the past few months, textiles, handicrafts, carpet and engineering goods are still reeling under the impact of the global crisis.
The ministry had given enhanced assistance to exporters to explore new markets and an extension of duty refund scheme till December 2010, besides other sops.
On the Budget expectations, Scindia said he had requested Finance Minister Pranab Mukherjee to at least retain the allocation (of Rs 3,652 crore) for the ministry, as it was in the previous year.
According to sources, as exports have started showing signs of recovery and industrial production, too, has picked up significantly, the finance ministry may start rolling back stimulus measures, resulting in lower Budget allocation for the commerce and industry ministry.
