Financial Package to Farmers

•  Export performance is dependent on a host of factors such as demand and supply condition (both domestic and international), Import intensity of the product, global prices and price elasticity, exchange rate etc.
  
•  Government extends support to export sector in the form of schemes for neutralization of duties on inputs required to manufacture the export product, import of capital goods at concessional duty for technological up-gradation and measures for procedural simplification and rationalization.
• In addition, Government has sought to provide support / incentives to the different export sectors, in particular, the labor intensive sectors, which are affected not only by the global situation but also the incentives being extended by our competing countries to their exporters.
• Various measures taken include export incentives under Vishesh Krishi and Gram Udyog Yojana (VKGUY), Focus Market Scheme (FMS), Focus Product Scheme (FPS), Market Linked Focus Product Scheme (MLFPS) for market expansion and product diversification, concessional export credit, interest subvention for specified sectors. These measures are reviewed and rationalized from time to time.

There had been significant growth in our exports in last few years. During the period 2003-08, our merchandise exports witnessed robust growth to reach a level of over US$ 185 billion in 2008-09 from US$ 63 billion in 2003-04. Growth in exports continued till September, 2008. It suffered a decline during the 12 months (October, 08 to September, 09) due to the shrinkage of the demand worldwide and particularly the contraction in demand in the traditional markets of our exports. This downward trend was arrested from October, 2009 onwards and our exports ended up with an export figure of US $ 178.75 billion in 2009-10. Arrest in decline of exports & its movement to positive trajectory since October,2009 clearly indicates that while the impact of global economic slowdown is still continuing on our exports, the supports / incentives have significantly contributed in the export growth.