Commerce ministry hopes export stimulus to stay for some more time

.....

"We have augured to the ministry of finance that those incentive schemes which relate to commerce and industry should be carried on for slightly longer period," he told reporters on the sidelines of a seminar organised by the Indian Chamber of Commerce.

"Specifically we have looked at three-four areas in terms of getting cheaper dollar credit for exporters, extending the EoU (Export Oriented Units) benefits, extending the interest subvention scheme and we are in consultation with the ministry of finance. It is our fervent hope that the finance ministry will accede to our request," he said.

The minister earlier said India has a target of achieving USD 200 billion merchandise exports for the next two fiscals.

According to the revised government data, exports aggregated to USD 185 billion in 2008-09.

Asked by how many months he would like the stimulus package to be extended, Scindia said: "We haven't defined that as yet, but we have said it needs to be in place. I would like to see the stimulus until there is complete recovery."

Talking about the tea and the spices sectors, he emphasised that proper branding is necessary in both the sectors. Proper branding exercise and marketing would help the sectors to reach new markets.

He said a core group has been formed with tea producers, companies like Tata Tetley, Hindustan Unilever, which is advising the ministry on its plans for branding.

Around 961 million kg tea is produced, out of which 186 million kg is exported from the country.