India Intends To Cancel Financial Support To Clothing And Other Export Industries.
India financial bulletin reported on June 17th that in order to deal with the financial crisis, the government decided to give special financial support to leather, rubber, chemicals, machinery, clothing and other export industries.
The Ministry of commerce is worried that the Ministry of Finance may cancel the policy because of the revival of exports.
India's exports rebounded from November 2009, rising 36% in April 2010 to 16 billion 900 million US dollars, but the high growth rate was largely caused by a low base.
At present, the economic crisis in the euro zone and the revaluation of the rupee have cast a shadow on the continued growth of India's exports.
According to reports, a senior official of the Ministry of Commerce and industry said that the Ministry of finance has decided to give financial support to the exporters of 13 billion 500 million of the above industries for the fiscal year.
Sharma, Minister of Commerce and industry, has sent a letter to Mukherjee, the finance minister, who hopes to release the financial support funds as soon as possible in the financial year, but has not yet received a positive reply.
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