India proposes to implement new export stimulus policies
According to Indian media reports, due to the declining demand in Europe and the United States, the Indian government plans to provide new export stimulus policies for leather products, handmade products, carpets and some engineering equipment to help Indian export companies expand exports. Earlier, the export stimulus policy introduced during the financial crisis expired on March 31, 2010.
Indian Minister of Commerce and Industry Sharma Mu announced the new export policy at the annual review of foreign trade policy on August 23, including providing tax-exempt certificates for exporting 2% of export value to specific commodities exported to specific regions.
However, due to the large export value of the textile industry, the government has not made a decision on whether the textile industry can use the new policy.
The export stimulus policy will further simplify the export process and allow more exporters to implement "self-certification." At present, only large-scale exporters in certain industries can use this policy to verify export goods without having to accept certification from customs officials. According to a study by the Indian Export Federation, the cost of trade accounts for 7% of the total cost of exporters. Simplifying procedures and reducing costs will bring exporters $5 billion in revenue.
In the first fiscal year of 2010, India’s exports increased by 32% year-on-year to US$ 50.7 billion, but export of handmade products, leather products, and carpets remained sluggish.
Indian Minister of Commerce and Industry Sharma Mu announced the new export policy at the annual review of foreign trade policy on August 23, including providing tax-exempt certificates for exporting 2% of export value to specific commodities exported to specific regions.
However, due to the large export value of the textile industry, the government has not made a decision on whether the textile industry can use the new policy.
The export stimulus policy will further simplify the export process and allow more exporters to implement "self-certification." At present, only large-scale exporters in certain industries can use this policy to verify export goods without having to accept certification from customs officials. According to a study by the Indian Export Federation, the cost of trade accounts for 7% of the total cost of exporters. Simplifying procedures and reducing costs will bring exporters $5 billion in revenue.
In the first fiscal year of 2010, India’s exports increased by 32% year-on-year to US$ 50.7 billion, but export of handmade products, leather products, and carpets remained sluggish.