India'S Backward Export Enterprises Will Benefit From Supporting Policies.

Anand Sharma, Minister of industry and Commerce in India (Anand Sharma), announced that the government knew that the demand for developed markets was slowing down, so the government was lagging behind.

Today, the government of India announced that it would increase the concessionary funds granted to exporters to 10 billion 520 million rupees, benefiting from mainly labour intensive industries, such as leather, handicrafts and textiles.

These support funds will help these industries to survive the fragile global economic recovery.

These preferential measures have been expanded through various plans, such as the DEPB plan. Under this plan, exporters will receive tax rebates, interest subsidies and capital.

However, the government has made it clear that this will be the last preferential policy under the DEPB plan, which will not be extended again, because this incentive measure is contrary to the WTO rules.

According to this plan, Handwoven Textiles, handicrafts, carpets and small and medium-sized enterprises have received 2% of the support funds. Now leather, textiles, engineering and jute industry are also included in the plan.

The zero tariff export promotion capital goods (EPCG) plan also extended for a year until March 31, 2012, and the plan was scheduled to end in March 31, 2011.

Transaction cost is a headache for exporters, accounting for about 7-8% of export value.

The government announced a gradual reduction.