China and Japan have been added to the 39 non-traditional export markets identified by the Centre as part of a series of new incentives to encourage Indian exporters to explore non-traditional business avenues, Union Minister of Commerce and Industry Anand Sharma said on Friday.
Addressing mediapersons after participating in an Open House hosted by the Federation of Indian Export Organisations (FIEO), Mr. Sharma said the inclusion of the two new markets — with which there had been a worrying trade imbalance — was aimed at expanding the horizon for exporters hit by dwindling orders from recessionary markets.
Mr. Sharma recalled that the Foreign Trade Policy announced last year identified 39 new markets under the market-linked focus product scheme that included 16 in Latin America and 10 in Asia. The new incentives announced in January included bringing 2,000 new products under the focus products scheme that provides export incentives, he said.
Mr. Sharma said his ministry was favouring the continuation of fiscal stimulus packages to all sectors that had been affected by recession.
‘Cautious withdrawal’
On whether a time-frame had been set for a stimulus exit plan, he said he was for “cautious and calibrated withdrawal,” as an abrupt withdrawal could be hurtful to the industry.
Stating that it would be irresponsible to speculate on a timeline for the withdrawal of aid, Mr. Sharma said the government would keep a close watch on the sectors and undertake a periodic sectoral review.
Mr. Sharma said his ministry had also recommended to the Finance Ministry measures such as extending easy credit availability, provision of reduced rate of interest for dollar credit at the London Interbank Offered Rate (LIBOR) plus one per cent in place of LIBOR plus 3.5 per cent, and the continuation of two per cent interest subvention to labour incentive sectors such as textiles, handicrafts, carpets, leather, gems and jewellery.
Earlier, addressing the Open House, Mr. Sharma urged exporters to have a global vision by looking more at non-traditional markets.
He also wanted exporters to bear in mind the need to be globally competitive. “The industry has to take up this challenge,” he said.
The government could only intervene in a crisis and facilitate supportive policy regimes, but the onus was on industry to perform and become world leaders, Mr. Sharma said.
