Government today announced incentives worth 625 crore rupees for exporters of garments, engineering, electronics and agro products as the demand for these items in the western economies is yet to pick up. The garment sector, which is still reporting contraction in overseas shipments, will receive sops for about 300 items -equivalent to two per cent of the export value. <br/><br/>Commerce and Industry Minister Anand Sharma told reporters in New Delhi that the dole-out would be given to the garment exporters under the Market Linked Focus Product (MLFP) scheme for shipments to the US and Europe- two of their biggest markets. The incentives for the sector will be for six months starting April 1. <br/><br/>Apparel exports declined by about 14 per cent to 862 million US dollars in January 2010, indicating lacklustre demand for Indian garments in major markets. Besides, 200 other products in engineering, electronics, agro chemicals and pesticides segments have been added to the MLFP scheme. <br/><br/>They will get support of 225 crore rupees from the government. The cost of the incentive will be borne by the Commerce Ministry from its internal budget. The Ministry has been provided about 4,000 crore rupees for the new fiscal beginning tomorrow.
News On AIR | March 31, 2010 11:00 PM
Centre announces incentives for exporters