October 11, 2008

Indian export target for 2008-09 fixed at USD 200 billion

The government set an export target of USD 200 billion for the 2008-09 up from 160 billion in 2007-08, even as it withdraws incentives for export of cement and steel to contain inflation.

Unveiling the annual supplement to the Foreign Trade Policy, Commerce & Industry Ministry Mr Kamal Nath said that interest subvention to help rupee hit exporters will be extended by one more year, while the average export obligation under the EPCG scheme will reduced.

In order to help the exporters hit by appreciation of rupee and slowdown of global economy, government has reduced customs duty on import of capital goods from 5% to 3% under the Export Promotion Capital Goods scheme.

The other export promotion measures announced by Mr Nath in the annual supplement to the FTP include extension of income tax exemption to the 100% export oriented units till 2010. The tax incentives were expiring on March 31st 2009.