Export SOPS – FM relents
“The rupee appreciated 9.7% against the US Dollar between April 3, 2007 and November 20, 2007. On a year on year basis, between October 2006 and October 2007, the appreciation of the rupee against US Dollar has been 15.1%.”, the Finance Minister told the Parliament, “In many ways, the appreciation of the rupee reflects the strength of our economy going forward. The rupee appreciation has a positive side to it in terms of lower production costs in sectors involving imported raw material and intermediates, lower oil import bill and lower cost of external debt servicing. Nevertheless, the sharp appreciation of the rupee over the last several months has put pressure on the export sectors, particularly those with low import intensity such as leather, textiles, handicrafts and marine products. Government is sensitive to the pressures on these sectors, and is conscious of the need to offer support to export sectors to prevent job losses and to give time to these sectors to make a smooth adjustment to the changing economic scenario.”
So he has announced packages of support in Customs and Service Tax.