Union Budget 2010 Impact on export sector

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[0/5]Total Votes [  ]  
Rate this page:
To trigger the growth of export sector in India, the Finance Minister Pranab Mukherjee has recommended some major initatives while presenting the Union budget 2010 in parliament on February 26, 2010, that are expected to lay a considerable impact on the export sector in coming years.

Union Budget 2010 Impact on energy sector

The Finance Minister in his Union budget 2010 speech extended the interest funding of 2% for another fiscal year for exports sector encompassing handicrafts, carpets, handlooms and SMEs.

Government has also offered interest funding of 2% on pre-consignment export credit and has extended it up to March 31, 2010 for exports in specific industries.

Union Budget 2010 reactions from exporters

If on one hand Union Budget 2010 offered a sign of relief to exporters, it also left them dissatisfied on the other. While the extension of concessional export investment system to another one year was hailed by selective exporters, they also felt that more initiative could have been implemented to enhance the sector.

Exporters believe that the segregation of textiles, marine, gems and jewellery and leather from the comprehensive plan add to the anguishes of these industries while some are still indicating a steady decline or low CAGR.

The Apparel Export Promotion Council (AEPC) said that the finance minister neglected the exporters' petition for exclusion of service tax, inspite of asserting compensations. They believe that the refund method being so unwieldy has hardly proved beneficial to the exporters.

Few exporters expressed their discontent with the Budget for not taking the chief issues of Section 10B (A) relief for tax exemption into consideration for handicraft exporters. The total impact of the Union Budget 2010 on export sector is not favorable for labor-intensive industries like handicrafts.

Last updated on : 15-05-2011

More about India Budget