Exports are back in the growth trajectory, but some concerns remain. The commerce and industry ministry is expected to conduct yet another sectoral review in November, Minister Anand Sharma told Nayanima Basu after unveiling the annual supplement to the Foreign Trade Policy of 2009-2014. Excerpts:
The new measures are mostly an extension of some existing schemes. Are these enough to sustain export growth?
The measures we have announced are good for now. There are constraints of resources, even what was available last year was difficult to get this year and what we have today may not be there in the future. So, we have to be very pragmatic.
Some of the measures are meant for the labour-intensive sectors. Do you see them recovering now?
We continued some of the schemes so that the stability is maintained and job loss is prevented. Now we can expect to see some of the sectors like handloom, handicrafts, leathers, and engineering goods posting positive growth. The rationale for extending some of schemes is only to boost the confidence of the exporters and industry.
Will slow recovery in the West affect Indian exports?
Protectionism, in any form, will be counterproductive. It is in the interest of all economies to engage more in commerce and encourage trade. That will only accelerate the process of recovery. Not doing so will have the reverse effect.
Kindly elaborate on the Rs 1,050-crore revenue forgone.
We have given what we could. This is adequate for exporters. We have to work with the available resources.
What about the bonus incentive scheme?
This is nothing new but giving some sectors beyond their entitlements under various schemes. They will get additional 2 per cent bonus. So the leather sector will now get 4 per cent benefit, in addition to the 2 per cent interest subvention. I am sure now these sectors will be able to perform better and come in the positive terrain.
