On August 23, Indian Minister of Commerce and Industry Anand Sharma announced the extension of fiscal stimulus policies for the export industry to help these industries survive the fragile global economic recovery period. Sharma stressed that the policy was extended because the Indian economy has not yet fully recovered, and there are many uncertainties in the global economy.
According to reports, the policy is expected to give a total value of 10.52 billion rupees (about 230 million US dollars) concessions, mainly for labor-intensive industries such as textiles, handmade products and leather industries. Specific measures include export tax rebates, preferential loans for importing production materials, and interest rates. Among them, the DEPB system, which has been implemented for 10 years, has been renewed for another 6 months (until June 30, 2011) despite being inconsistent with the WTO rules. The mechanical engineering, textile, leather and other industries began to enjoy a 2% interest rate subsidy policy (valid until March 31, 2011). In addition, the government extended the period of validity of the Zero Export Tariff Policy for Production Materials (EPCG) by one year (until March 31, 2011). The transaction costs of export products also decreased at the same time, after which the cost accounted for about 7%-8% of the export value.
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