India’s “Economic Times†reported on August 13 that in order to help export companies survive the downturn in demand from Europe and the United States, India intends to provide new export stimulus policies for leather products, handicrafts, carpets and some engineering equipment. Earlier, the policy of expanding exports introduced during the financial crisis expired on March 31 this year.
The report stated that Indian Minister of Commerce and Industry Sharma is expected to announce new policies to encourage exports at the annual review of foreign trade policy on August 23rd, such as providing tax-exempt certificates with a value of 2% of exports for certain commodities sold in specific regions. However, the Ministry of Commerce and Industry has not yet made a decision on whether the textile industry will apply new policies. Because the textile industry has a huge amount of exports, supporting the industry will occupy a lot of government resources.
The report pointed out that the new policy will further simplify the export process and allow more exporters to implement "self-certification." At present, only large exporters in certain industries are allowed to verify their own exports without having to accept the certification of customs officials. According to a study by the Indian Federation of Exporting Organizations (FIEO), transaction costs account for 7% of the total cost of exporters, and simplifying procedures and reducing cost policies will bring exporters 5 billion U.S. dollars in economic benefits.
In the first quarter of this year (April-June), India’s exports increased by 32% year-on-year to US$50.7 billion, but exports from handicrafts, leather goods, and carpets remained sluggish.
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