ESC calls for scheme to boost IT exports

The electronics and software export promotion body has requested the commerce ministry for support schemes for boosting exports in view of the severe global export constraints.

Representatives of the Electronics and Computer Software Export Council met Commerce Minister Kamal Nath recently and apprised him of the handicaps being faced by the small and medium companies in the IT sector.

The ESC delegation, which included the council executive director D K Sareen and vice-chairman Nalin Kohli, told the minister that hardening of the rupee against the dollar, low export margins, inadequate schemes for exploring new markets and consolidating the existing markets, switch-off and switch-on on policy regarding export were posing problems for SMEs in the IT sector.

Kamal Nath told the delegation that these problems will be looked into, an ESC release said.

During the meeting with the minister, ESC delegation said that there was a need for evolving newer schemes with attractive incentive packages which are WTO compatible.

ESC said that scope for the market development assistance scheme should be widened to include market assistance in non-focussed areas also.

The delegation also pitched for restoration of fiscal incentives to the exporters, which are being phased out. The minister assured the ESC delegation that the issue will be taken up with the finance ministry.