Exporters are likely to seek fiscal support measures in their pre-budget meeting with Finance Minister Nirmala Sitharaman here on Tuesday to increase the country’s exports to USD 2 trillion by 2030, an industry official said. The country’s exports of goods and services have increased to USD 778 billion in 2023-24 from USD 478 billion in 2017-18.
“The aim is to take it to USD 2 trillion (USD one trillion each for goods and services) by 2030. It is an ambitious target but achievable, and it requires extra efforts by the exporters and support measures from the government,” the industry official said.
The exporters may demand fiscal incentives to promote research and development, extension of the Interest Equalisation Scheme, and marketing support provided through the Market Access Initiative (MAI).
The equalisation scheme will end on June 30 this year. It was started on April 1, 2015, and was initially valid for five years up to March 31, 2020.
On December 8, 2023, the Union Cabinet approved an additional allocation of Rs 2,500 crore for the continuation of the scheme up to June 30.
The scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail of rupee export credit at competitive rates at a time when the global economy is facing headwinds.
Exporters get subsidies under the ‘Interest Equalisation Scheme for pre and post-shipment rupee export credit.
Currently, the scheme provides an interest equalisation benefit at the rate of 2 per cent on pre and post-shipment rupee export credit to merchant and manufacturer exporters of 410 identified tariff lines at 4 digit level and 3 per cent to all MSME manufacturer exporters.
These sectors include handicrafts, leather, certain fabrics, carpets and readymade garments.
During April-May 2024-25, merchandise exports rose by 5.1 per cent to USD 73.12 billion, and imports rose 8.89 per cent to USD 116 billion.