Exporters in their pre-budget meeting with Finance Minister Nirmala Sitharaman are likely to seek fiscal support measures to boost the country’s exports to USD 2 trillion by 2030. An industry official said the country’s exports of goods and services are set to grow from USD 478 billion in 2017-18 to USD 778 billion in 2023-24. The aim is to take it to USD 2 trillion (USD 1 trillion each for goods and services) by 2030. It is an ambitious target but achievable and requires additional efforts by exporters and support measures from the government.
This demand can also arise in demand
According to the news, exporters may seek fiscal incentives to promote research and development, extension of the interest equalization scheme and marketing support provided through the Market Access Initiative (MAI). The equalization scheme will end on June 30 this year. It was launched on April 1, 2015 and was initially valid for five years till March 31, 2020. On December 8, 2023, the Union Cabinet approved an additional allocation of Rs 2,500 crore to continue the scheme till June 30.
Exporters get subsidies
The scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail rupee export credit at competitive rates at a time when the global economy is facing difficulties. Exporters get subsidy under the ‘Interest Equalisation Scheme for Pre and Post Shipment Rupee Export Credit’. Currently, the scheme provides interest equalisation benefit at the rate of 2 per cent on pre and post shipment rupee export credit to merchant and manufacturer exporters of 410 identified tariff lines at the 4 digit level.
Provides interest equalization benefit at the rate of 3 per cent to all MSME manufacturer exporters. These sectors include handicrafts, leather, certain clothing, carpets and readymade garments. Merchandise exports grew by 5. 1 per cent to USD 73. 12 billion and imports grew by 8. 89 per cent to USD 116 billion during April-May 2024-25.
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