The government has set up a high level panel to redress the problems of the exporting sector in wake of a sharp drop in outward shipments in the past 11 months.
The inter-ministerial panel, chaired by Commerce Secretary Rahul Khullar, will discuss issues raised by the exporters, an official said.
“However, the committee’s recommendations would be advisory in nature,” he said.
The committee will have officials from the Department of Revenue, Department of Economic Affairs, Reserve Bank of India and Directorate General of Export Promotion and other departments.
In April-August this fiscal, the merchandise exports contracted by 31.3 per cent to $63.9 billion from $93.1 billion in the same period last year as the demand weakened in the country’s traditional markets of the US and EU.
To prop up the sector, the government in its new Foreign Trade Policy has announced sops on trade with new markets in Latin America and Africa, which by and large remained insulated from the global crisis.
Meanwhile, the RBI has extended the two per cent interest subsidy for exporters till March 31, 2010. The subsidy is to end on September 30 this year.