Tax relief for job-creating exporters on cards

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: to exporters in the SME segment and 4% to those in employment-intensive sectors like textiles, leather, marine and handicrafts.

Also, it would grant Rs 800 crore more to the Technology Upgradation Fund Scheme for the textile industry that would help them buy the latest machinery using cheaper credit.

The Centre is also planning to grant around Rs 350-400 crore to the Export Credit Guarantee Corporation of India to fund the single-buyer policy to exporters who are targeting buyers in new markets, especially those other than in the US and the European Union where there is a demand slowdown.

It would also enhance the Market Development Assistance (MDA) scheme from Rs 50 crore to Rs 100 crore and the Market Assistance Initiative (MIA) from Rs 300 crore to Rs 450 crore.

MDA is the assistance given to exporters for participating in trade fairs and exhibitions, while MAI has a long-term perspective as the fund is used for developing a new market by conducting market surveys, exhibitions and setting up warehousing facilities.

The Centre is also reviewing the drawback and DEPB rates. It might increase these rates by factoring in the high transaction costs that is hurting the competitiveness of the export sector.

Stimulant dose

•Rs 2,000-cr relief package for the export sector

•Rs 15,000-cr budgetary support for the core sector

•Special credit for NBFCs, housing & auto sectors