To help exporters in their marketing initiatives, the government is considering an export development fund since a slowdown in the global economy is hurting export volumes and the intense competition in the traditional markets requires aggressive marketing skills. The fund, with a likely corpus of about Rs 5,000 crore to Rs 10,000 crore will finance exporters’ participation in road shows and trade fairs.
To contract the widening current account deficit, the government is focusing to boost the country’s export; therefore it has planned for high financial assistance even in the time, when the finance ministry is in the fiscal consolidation mode. In the first 11 months of this fiscal, India’s exports declined by 4% to $265.95 billion, while, the country’s current account deficit touched an all time high of 4.6% of the GDP in the first half of this fiscal and is estimated to touch 5% this fiscal.
The government is also looking at ways to increase exports through the FTP to bridge the growing deficits in the trade and the current account and bring the balance of payment under control. The commerce ministry is also examining a number of proposals from the industry that include extending direct cash incentives to exporters of a larger number of products to targeted markets. The annual foreign trade policy is expected to come in the first week of April and the Board of Trade will meet on March 22 to discuss measures and sops for the export industry.
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