GOVERNMENT OF INDIA
Ministry of Commerce and Industry
DEPARTMENT OF COMMERCE
UNSTARRED QUESTION NO 1649
TO BE ANSWERED ON 05.12.2007
Closure of Small and Medium Exporting Industries.
SHRI RAJEEV CHANDRASEKHAR
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:-
(a) whether it is a fact that a large number of small and medium scale exporting industries are closing on account of current exchange rate scenario; and
(b) if so, the action proposed by Government to remedy the situation?
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JAIRAM RAMESH)
(a) Government is receiving reports of closure and loss of jobs of export units especially in labour intensive sectors such as handicrafts, marine products, textiles, leather and leather products and plantations;
(b) To ensure that the job losses in these sectors are minimized, Government announced a set of measures aimed at providing relief to the exporters. These include reduction in the interest rate on pre shipment and post shipment credit, increase in drawback and DEPB rates, a select set of services for refund/ exemption of service taxes, interest on certain EEFC balances and increasing the list of products under Vishesh Krishi and Gram Udyog Yojna and also raising the revenue ceiling under the Scheme by Rs. 300 crores, accelerated reimbursement of terminal excise duty and central sales tax to exporters, provision of payment of interest for delays in re-imbursement of Terminal Excise Duty and Central Sales Tax. It is expected that these measures would, to some extent, neutralize the impact of rupee appreciation.