Industry & Economy
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Exports & Imports
Jaitley assures support to exporters
Our Bureau
New Delhi
,
Nov. 10
THE Union Commerce and Industry Minister, Mr Arun Jaitley, has assured Government's support to the exporting community for sustaining the current growth momentum.
In an interaction with the Chairmen of Export Promotion Councils and the President of the Federation of Indian Export Organisations (FIEO) on Friday, Mr Jaitley said that the issues of concern for the exporting community would also be taken up with the Union Finance Minister. The exporting community have been expressing concern over the recent appreciation of the rupee against the dollar.
The FIEO President, Mr Rafeeque Ahmed, made a case for restoration of 100 per cent tax exemption on export profits under Section 80HHC of the Income Tax Act, 1961. He suggested that freight subsidy scheme may be introduced wherein 50 per cent of the amount is reimbursed if the freight value is 2 per cent of the free-on-board (FOB) value of exports.
Further, FIEO has also said that the Reserve Bank be directed to open a "dollar window" to lend to Indian banks at LIBOR. The banks may make available such dollar loans in the desired quantum as per RBI guidelines i.e. at LIBOR+0.75 per cent, the FIEO has said.
The federation has suggested that RBI must ask banks to meet the requirements of foreign currency funds of exporters before extending FCNR (B) loans to corporates which are not inot exports.
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