The government on Friday announced fiscal incentives worth Rs 500 crore (Rs 5 billion) to exporters of select products, helping them to cope with the uneven global recovery marked by problems in Europe.
The sops, to be given under different schemes like 'Focus Market' and 'Focus Products' from January to December 2011, were unveiled here by Commerce and Industry Minister Anand Sharma.
The sectors, which will benefit from the Commerce Ministry's initiative include agri products, chemicals, engineering, electronics, plastics and textiles. Over 617 products would get the benefit.
"Situation in the current fiscal is far better. . . but the situation in Europe remains worrisome. Recovery is not even..therefore, (it) poses a challenge for our exporters", he said.
However, he was confident that the target of $200
billion for merchandise exports would be met during the current financial year.
Overseas shipments have shown a growth of 29.5 per cent during April-December period this fiscal.
"We are well underway to achieve the export target and may even cross it," Sharma said. Exports to 15 countries, including Australia, Brazil, New Zealand, China and Japan would be eligible for the benefits.
In the Focus Market Scheme, exporters get duty credit of three per cent on the value of consignments.
Whereas, under the Focus Product Scheme, the exporters avail duty credit of five per cent.
The government had given similar sops worth Rs 600 crore (Rs 6 billion) in January, 2010.
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The government on Friday announced fiscal incentives worth Rs 500 crore (Rs 5 billion) to exporters of select products, helping them to cope with the uneven global recovery marked by problems in Europe.