India unfurls 7-point strategy to boost exports to $360 bn in 2012-13

The Govt with an aim to thrust exports up by 20% in 2012-13 announced a series of initiative as part of 7-point strategy including interest subsidy and market diversification programmes. It announced extension of Interest Subsidy Scheme by 1 year till March 31, 2013 for labour intensive sectors. The government also decided to bring new guidelines to refurbish Special Economic Zones (SEZ) and Export Oriented Unit (EOU) schemes to further boost the shipments. In 2011, the government had introduced a special allowance for labour intensive industry by extending the facility of 2 % interest subvention to handlooms, handicrafts, carpets and small and medium enterprises (SMEs). Now the Govt targets to expand its coverage to include other labour intensive sectors namely toys, sports goods, processed agricultural products and ready-made garments. India’s exports increased by 20.94 per cent to $303.71 billion in the financial year ended in March 31, 2012, exceeding the government’s target of $300 billion. However, a steep decline in exports growth in the last few months depicts that sustaining a similar growth this financial year would be a tedious job.

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