In a development that is expected to cheer the numerous SMEs who have been seeking continuation of export subsidies to their sectors, the Commerce department has urged the Finance Ministry for additional funds to avoid any financial constraint in the export sector.

“There is already a dearth of funds in several sectors such as garments, leather and agriculture, among others, which needs to be addressed immediately. Although it might not be feasible for the government to assist every sector, it should try to help the sectors which were affected the most by the recession so as to promote employment and also boost productivity and exports,” said Biswanath Bhattacharya, president of the Federation of Small and Medium Industries (FOSMI) to a Bizxchange correspondent.

Earlier in May this year, the Commerce Ministry had urged the Finance Ministry to extend interest subsidy to all recession-affected export sectors in the country.

“Though the US economy has almost emerged from the impact of the global financial meltdown, the international market is still unstable and suffering due to the Eurozone crisis and the after-effects of recession. We need the export sops to revive the profitability in our businesses and help us explore newer markets,” said Mrigesh Bhandari, owner of Bhandari Exports, a small-sized unit in Jodhpur, which manufactures and exports wooden furniture.

With the Commerce Ministry pushing for extension of export sops and allocation of more funds to the export sector, SMEs in the sector can hope for a more productive year ahead.

Sreemita Bhattacharya