Nath meets PM over proposals related to relief for exporters

NEW DELHI: With finance minister P Chidambaram giving exporters the cold shoulder in the Budget—apart from the meagre sops for select sectors—commerce minister Kamal Nath met the prime minister yet again on Tuesday to urge him to address the problems being faced by exporters due to rupee’s appreciation. A number of proposals related to relief for exporters are pending with the finance ministry.

Mr Nath, however, said he had no reservations on the loan waiver package for farmers announced in the Budget and has ‘congratulated’ the FM for this measure. Speaking to reporters on Tuesday, Mr Nath said, “Of course, I welcome it (the package). But we must formulate a mechanism for its execution, which the FM is doing”.

While the Budget might not have delivered the goods to exporters, the commerce department is hopeful of appropriate government intervention outside it. “It is an ongoing process. With the rupee’s appreciation, Indian exporters are feeling concerned about the lack of competitiveness in the global market,” he said.

The minister said his department was concerned about the plight of exporters, especially the ones in labour-intensive sectors. According to estimates by the commerce department, the over-13% rise in the value of rupee against the dollar would impact about 2,75,000 jobs in labour-intensive sectors.

The commerce department is disappointed that none of the recommendations of the Krishamurthy and Rangachary committees, set up by the prime minister to give suggestions on bailing out exporters, were followed by the FM in his Budget.

The committees had recommended incentives for the industry to encourage manufacturing and exports and suggested special measures for labour-intensive sectors like textile, gems & jewellery, handicraft, leather and marine products. Exports from these sectors have either stagnated or gone down during recent months.