News: India's export schemes hit revenues by $8.65 bln

(RTR 02/08/2006) New Delhi - The export promotion schemes dented government revenues to the tune of 403.29 billion rupees during the 2005/06 financial year, the junior commerce minister said on Wednesday.

The government handed benefits worth 400.22 billion rupees to exporters the year before, and 410.62 billion rupees during 2003/04, Jairam Ramesh said in a written reply to parliament.

India offers companies duty free imports of components and raw materials, and income tax and sales tax exemptions to boost exports and foreign exchange earnings.

Nearly a third of all benefits -- 133.61 billion rupees -- were given in the form of an advance licence scheme, which allows a company concessional imports, the minister said.

Incentives given to export-oriented units, electronic hardware technology parks, software technology parks and export promotion zones amounted to 102.78 billion rupees.

Forex earnings from export-oriented units totalled $8.5 billion in 2005/06, or 8.28 percent of India's total exports, the minister added.