India : Relief package for distressed exporters

A new incentive package is being readied for exporters and especially for employment generating sectors like leather, handicraft and textiles. Authentic sources confirm that the package will be placed before the Cabinet committee on economic affairs (CCEA) next week.
In order to counteract the losses incurred due to rupee appreciation, the Federation of Indian Export Organization (FIEO) has claimed for a 5 percent increase in the DEPB and drawback rates.
It has also demanded that the rates ought to be effective for a year so that exporters could do their costing competitively.
Exports have declined by 56 percent for handicrafts, 25 for textile sector and 6 for leather products.
To overcome the disastrous consequences of such unequal trade, exporters are demanding for a drop in lending rates, exclusion of service taxes for all services availed by exporters and creation of an export neutralization fund for exporters.