New Delhi: Despite slow export figures, exporters do not have many expectations from the upcoming budget. Export growth rate came down significantly from sky-rocketing 82 percent in July 2011 to 10.1 percent in January 2012.

According to the sources in the Finance Ministry, exporters will have to rely on allocations from the ministry in order to increase export figures. There is no chance of any special package in the budget.

Exporters are demanding to waive off excise duties on handmade products, lower excise duty on manmade fibre and compensation for the loss incurred due to constant revision of exchange rates. However, with current financial state government is not in a position to extend any concessions.
Exporters are also demanding to waive off Minimum Alternate Tax (MAT) for the units located in SEZs. This issue has already been raised by the Commerce Ministry in front of the Finance Ministry. But with the drop in tax revenue in 2011-12, the ministry is not in a position to consider the proposal. The government’s present priority is to check fiscal deficit. They have already been burdened by subsidy load.     

According to the Finance Ministry, the Commerce Ministry can extend any concession from their budgetary allocation for exporters. As there is a possibility of 16-18 percent growth in the total budget amount and the amount provisioned for every ministry is also likely to increase in the same proportion. Although a waiver on export loans in the mid of this year by the RBI cannot be ruled out.