In the wake of rupee appreciation and increasing interest rates, the Indian legislative body is trying hard to work out a way to relieve textile exporters of the burgeoning pressure.
After days of consideration, the commerce ministry has finally surfaced with solutions and sent them for Government deliberations. The suggestions largely include relief measures that may even reflect in the forthcoming budget.
The ministry has suggested an import duty cut in certain selected categories and a complete elimination of the same in some other.In addition to this, the finance and commerce ministry is also giving a thought to restoring subsidies on exports.
Rupee appreciation has brought down the profit margins of exporters compelling manufacturers to reduce their outputs. However, the Government has since July, cut down the bank lending rates and raised tax refunds to counteract the effects.
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