Nath: Helping hand

New Delhi, March 11: The government will introduce another package in the annual foreign trade policy to give relief to exporters suffering from the appreciating rupee, commerce and industry minister Kamal Nath has said.

The commerce ministry is firming up the policy, which will be announced next month.

“We are looking at measures which are WTO compatible and can neutralise levies which are not being refunded at the moment,” Nath said on the sidelines of a seminar organised by the Federation of Indian Chambers of Commerce and Industry.

According to Nath, the ministry is working on schemes to ensure that exporters, who are hit by the rupee appreciation but have the potential for growth, are given support.

“We are looking at what relief can be given to exporters, especially in the employment generating sectors and sectors where we want to give priority,” Nath said.

He added this would include handicraft, textiles, leather and gems and jewellery. Nath said although exports were short of the original fiscal target of $160 billion, they should clock $152-155 billion by the end of this financial year.

Nath was optimistic that exports would grow over 20 per cent in 2008-09. He said the government was not considering the option of hedging for exports, as that was “not sustainable and credible in the long term”. The rupee has appreciated 9.78 per cent between April 2007 and January 2008.