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 exporters in India expand exports. Prior to this, the export stimulus was introduced during the financial crisis. The policy 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 the provision of a tax exemption certificate of export value of 2% for certain commodities exported to a specific area.

However, due to the large export volume 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-validation.” Currently, only large-scale exporters in certain industries can use this policy to verify export goods without having to receive certification from customs officials. The study of the Union pointed out that trade costs account for 7% of the total cost of exporters, simplifying procedures and reducing costs will bring exporters 5 billion U.S. dollars.

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.