India will boost exports from labor-intensive sectors such as agriculture, textiles, leather, handicrafts and more.
This will be done with incentives amounting to Rs 600 crores. Merchant exporters will be included under the interest equalisation scheme for pre- and post-shipment rupee export credit by allowing them interest equalisation rate of three per cent on such credit for export of products covered under 416 tariff lines identified under the scheme.

The subsidy scheme is expected to increase production and also generate employment in these sectors, which generally are micro, small and medium industries.

There have been challenges for the export sector over a period of time and one big challenge is credit. There has been a sharp decline in credit to the export sector.

Another challenge the export sector is facing is related to GST. A e-wallet mechanism may be introduced to effectively address the woes of exporters who have been complaining of delays in refund of taxes under the GST regime.

To reduce transaction costs for exporters, there may be multi-modal transport, which will help enhance efficiency in the logistics sector. Each logistics company will be rated by a regulatory organisation, which will be created by the industry.

India’s exports grew by a meager 0.80 per cent in November. During April to November, exports rose 11.58 per cent.