Government mulls reducing export subsidies

The Government of India is exploring the possibility of bringing down export subsidies and is instead looking for ways to boost infrastructure, the flow of credit and enhance insurance. These ideas are likely to be discussed by the Minister of Commerce & Industry, Mr. Piyush Goyal, with states in a meeting today. Since the exporters often cite cost of capital and poor logistics as factors hampering their competitiveness in the international markets, the Government is trying to address these concerns. It is also likely to award the better performing states with railway connectivity and other benefits to boost their exports. It is also felt that dependence on subsidies needs to be reduced and steps must be taken to boost export competitiveness instead.