The Centre on Tuesday said it is working on a scheme to refund local taxes and levies to labour- intensive industries with little import content, to offset the impact of the appreciating rupee, which ended at a nine-year high yesterday. "The rupee appreciation is a cause of concern for exporters and manufacturing firms... we are looking at framing a scheme for labour-intensive industries with no or very little import content to refund the local taxes and levies," minister of commerce and industries Kamal Nath said, while spaking to press on the sidelines of the 3rd India-GCC Industrial Forum in Mumbai.
"The rupee rise is a concern and the ministry of commerce is in discussions with the RBI... the rise is also connected with international factors like fall in the dollar. We are also in discussion with the export council on what should be the way forward," Nath said.
The minister said the industry had built up a resilience and become very competitive, and could digest the rupee appreciation. Nath said the policy on Special Economic Zones would continue but there would be no compulsory land acquisitions. On the trade deficit, he said it is likely to remain neutral.
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