The new wave of incentives being proposed especially for the labour intensive exporting verticals.
Government is planning to dole-out INR 1000 crores of fresh incentives for the exporters. The incentives are largely for the following labour intensive sectors:
- Leather
- Carpets
- Handicrafts
- Engineering goods
- Jute
- Readymade garments
Among others...
Moreover,
- Duty free imports of capital goods have been allowed till end of March 2012
- 2% interest subsidy has been increased to textiles, leather and jute industry
Amidst these incentives, Government is also planning to stop the popular import duty reimbursement scheme (DEPB).
This is done in line with the impending implementation of the GST (Goods and Service Tax) which when rolled out would let exporters claim refund on the basis of GST.
What does this mean: Government is giving fresh incentives to the exporters and especially to the verticals which are labour intensive. This move aims to achieve the following:
- Increased exports
- More Jobs created especially in Leather, Textile, Readymade Garments, Jute, Handy-crafts and other allied industries.
Some of the listed companies which may be affected due to this development:
- Bata India - Leather
- Relaxo Footwear - Leather
- Liberty Shoes – Leather
- Mundra Port – Engineering, Exports
- Punj Lloyd – Engineering
- EngineersInd – Engineering
- Birla Precision – Engineering/Machine Tools
- Zodiac Clothing – Readymade Garments
- Gokaldas Exports – Readymade Garments
Source: The Economic Times
