The Central government is seriously considering a scheme that will protect the interests of exporters in the light of proposed withdrawal of duty entitlement passbook (DEPB) scheme in the near future.
Recently, government has extended the deadline for phasing out of DEPB scheme by three months till September on the back of exporters’ demand. However, the scheme is least expected to receive further extension as the government is losing around Rs 8,000 crore from duty exemption.
“Government will come up with a scheme which will protect interests of exporters in case of phasing out of DEPB scheme,” Anup K Pujari, director general of foreign trade (DGFT) said on the sidelines of attending ‘Exporters Excellence Award’ organised by Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here.
Central government is also working to provide some relief to exporters in the wake of hardening interest rate regime in the economy.
“The issue of providing some relief to exporters in the wake up of rise in interest rate is under serious consideration of Finance and Commerce ministries and we will come up with some measures regarding this,” he said.
Earlier, interest subvention scheme had been withdrawn by the government from March, 2011, which has pushed up interest cost for exporters in the recent time.
With regard to concern raised by government in the wake up of misuse of Importer-Exporter Code ( IEC).
“We urge exporters to file their applications electronically to reduce any misuse of the IEC,” he added.
India contributes around 1.4 per cent of global exports as of now and aims to reach 5 per cent of global exports by 2020.
The country exported around $24 billion of goods and services and imported $33 billion of them in April, 2011. However, imports have surged to $41 billion in May, while exports have touched $26 billion. “Though trade deficit indicates growth of an economy, the higher trade deficit for a longer period has its own risks and can distort functioning of an economy. So, we urge exporters to find innovative methods of exporting their products which will fill the rising trade deficit numbers,” he said.
He also said that higher interface with exporters would solve many procedural bottlenecks in foreign trade.
