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India's new foreign trade policy has been unveiled. Indian commerce minister Anand Sharma says the country will offer export incentives to labor-intensive sectors.
India's exports, which make about one-fifth of its economy, returned to double digit growth in last November. But the pace of growth slowed in July, reflecting a dampening base effect and demand contraction in Europe and the U.S..
India's Minister of Commerce and Industry, Anand Sharma, says incentives will be offered to labor-intensive sectors. This is aimed at helping exporters tide over an uncertain and fragile global economic recovery. The additional incentives will cost the government over 10 billion Rupees.
The Minister also responded to questions on rubber imports, saying India isn't self-sufficient in producing rubber for domestic consumption. Imports of rubber are allowed, but fall under the restricted list.
Anand Sharma, Indian Minister of Commerce & Industry said "Looking at the demand for the need of the domestic industry and the manufacturers too, we are not self-sufficient in the production. And our own prices are much higher. But it's restricted list, so it's not that anybody can import natural rubber."
The minister also extended the zero duty Export Promotion for Capital Goods, and the Status Holders Incentive scheme which supports technology upgrades. Both incentive schemes will run until March 31st 2011.