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Citing Poor Effort From Industry To Improve Competitiveness, Government Plans To Remove Subsidies To Exporters
Union Minister Piyush Goyal (Raj K Raj/Hindustan Times via Getty Images)
The Centre is looking to reduce the dependency of subsidies for the exporters by slowly removing them. Commerce and Industry Minister Piyush Goyal is expected to bring this up during the meeting between the centre and state governments, the Times of India reports.
Last year, in a move to improve the credit flow and enhance export credit insurance, then interim finance minister had allocated Rs 2,000 crore equity along with an additional Rs 1,000 crore to the National Export Insurance Account Trust (NEIA) to promote project exports.
The centre felt that the industry and exporters are depending a lot on the subsidies it provides with little but no effort from their side to improve competitiveness. It is also considering the long existed factors like cost of capital, poor logistics and competition in international markets and would address them.
As an incentive to move away from the subsidies regime, the government is proposing a reward system that offers benefits like railway connectivity to encourage states to boost their export share.
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