Decision on stimulus package for exporters this week

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"The finance and commerce ministers are scheduled to meet later this week to decide on extension and withdrawal of stimulus packages for exporters for fiscal 2010-11," Khullar said at a function organised by industry body Associated Chambers of Commerce and Industry of India (Assocham).

Khullar felt that incentives should be extended to sectors that are still under stress and the stimulus package be withdrawn in those areas in which recovery has happened.

Earlier in the day, Union Minister of State for Commerce and Industry Jyotiraditya Scindia said in Kolkata that his ministry has urged finance ministry to continue the export stimulus for some more time until the export sector recovers completely.

Commerce minister had last month said his ministry would offer Rs.450-500 crore as incentives to exporters till this fiscal-end to push exports of 2,000 products.

India's exports rose 9 percent to USD 14.6 billion (Rs.73,000 crore) in December, up from USD 13.2 billion (Rs.66,000 crore) in November, when exports rose 18.2 percent after 13 straight months of decline.

India has a target of achieving USD 200 billion (Rs.10 trillion) merchandise exports for the next two fiscals.

Khullar, however, was suspicious if India would be able to achieve export proceedings within range of USD 165-170 billion for 2009-10 but exuded enough confidence that exports for January 2010 could be USD 14 billion as compared to USD 14.6 billion in December 2009.