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ShareNew Delhi: India's bank loan rates for exporters need to be cut further and procedures made easier to cut transaction costs and help boost exports, commerce and industry minister Anand Sharma said on Wednesday, ahead of a policy review.
The exchange rate is not a concern now for exporters, Sharma added. "Currency fluctuations are a reality and exporters do factor in that. In the past, there have been occasions when exporters have been hurt, particularly when hedges for forward contracts have been made," he said.
The government is to announce its foreign trade policy for the five years starting 2009-10 on Thursday, and expectations are that it may extend incentives such as duty refund and interest subsidies for exporters hit by the global slump. "We will be looking at every possibility for extending support to exporters," Sharma told reporters after a conference.
Earlier, Sharma said the government may consider more incentives for labour-intensive sectors such as gems and jewellery, textile and leather goods to prevent job losses.
India's exports have been falling since October, and were down 31.3% in the June quarter, as recession in some developed nations trimmed demand for Indian merchandise.
High transaction costs that includes interest on bank loans, taxes and transport charges have further increased losses of exporting firms.
