| Small and medium exporting units in India may soon | | | | revalidation of expired licences are also on the anvil. |
| heave a sigh of relief once the much-awaited interim | | | | The announcement of such policies can help revive |
| foreign trade policy is announced this month. The | | | | the export sector, which is perhaps going through its |
| export sector has pinned its hopes on the interim | | | | worst crisis. |
| foreign trade policy. | | | | Though the interest rate subvention scheme was |
| It feels that the policy would help the exporting units | | | | extended for the export sector in India last week |
| strengthen their position in the global contracting | | | | during the interim budget announcement, SME |
| market. The sector is now eagerly hoping that its | | | | exporters sought additional sops from the |
| issues are addressed and demands are met by the | | | | government. |
| government. | | | | Exporters are hopeful that the government will not |
| Exporters are positive that the government would | | | | disappoint them and consider their demands this time |
| offer benefits and extend sops and tax incentives to | | | | around. They are expecting interim foreign trade |
| help the sector mitigate the impact of the financial | | | | policy of 2009 to include benefits under duty |
| crisis. | | | | reimbursement schemes and steps that would reduce |
| The impending interim foreign trade policy is | | | | the average export obligation of exporters. |
| expected to include measures that would simplify | | | | A delinking of grant of benefit under the duty |
| procedures and cut down transaction costs for | | | | entitlement pass book (DEPB) scheme is another |
| exporters and importers in India. | | | | incentive which the export segment can expect from |
| These moves are likely to ease the burden on the | | | | the interim foreign trade policy. |
| small and medium enterprises (SMEs) that are facing | | | | Though the government may not offer more fiscal |
| fierce competition in the export-import business. | | | | sops to exporters, by implementing some procedural |
| Moreover, measures like extending the time limit for | | | | simplifications and incorporating crucial measures, it |
| meeting export obligations against duty-free imports | | | | can certainly make the going easier for them during |
| of machinery and raw materials, and allowing | | | | these tough times. |