New Delhi: Amid fiscal deficit slippages due to additional subsidy burden on fertiliser and oil, the government o Thursday ruled out fiscal incentives to exporters and asked them to look for new markets to boost shipments. Khullar asked exporters to explore new markets other then the traditional ones - the US and Europe - like Latin America and Africa to boost shipments. (Agencies)
On account of demand slowdown in the developed markets and declining exports, Indian exporters are demanding fiscal incentives to boost the shipments.
"I cannot see any remote possibility for this (fiscal incentive)...We don’t have money to throw at this point of time. It is not going to happen...," Commerce Secretary Rahul Khullar said here at the Assocham function.
He said that the rising fiscal deficit would make it difficult for the government to provide any fiscal incentive to exporters.
"...explore markets like Brazil, Peru, Chile and Columbia and do not wait for the recovery of the US and European markets," he said.
The government proposes to bring down the fiscal deficit to 4.6 percent in 2011-12, from 4.7 percent in 2010-11. However, poor disinvestment and tardy revenue collection is putting pressure on fiscal deficit.
Khullar also said that it is essential to improve export infrastructure and reduce transaction cost to help India double its exports by 2014 in the wake of global slowdown.
The external environment is not conducive especially in the EU and the US and the next two years are going to be difficult for Indian exporters, Khullar said.
The Commerce Ministry has come out with a strategy paper aimed at doubling India's exports to USD 450 billion in the next three years and laying out a road map for the future of exports.
However, the worsening demand situation in the developed markets has started impacting the country's shipments.
"The external environment is not good and is unlikely to get better in the near future. Through 2012, what you are going to see is cutbacks in government expenditure, exchange rate fluctuations and financial sector problems.
"This means the external demand is not going to be conducive," Khullar said
He said in order to boost the country's exports there is an urgent "need to fix domestic problems like rail and port infrastructure, road connectivity and freight charges".
From a peak of 82 percent in July, India's export growth has slipped to 44.25 percent in August, 36.36 percent in September and 10.8 percent in October.
New Delhi: Amid fiscal deficit slippages due to additional subsidy burden on fertiliser and oil, the government o Thursday ruled out fiscal incentives to exporters and asked them to look for new markets to boost shipments.
Khullar asked exporters to explore new markets other then the traditional ones - the US and Europe - like Latin America and Africa to boost shipments.