India implements measures to negate effects of the rising rupee
In response to the ever-increasing pressures on Indian exporters, particularly in sectors such as the leather industry, as a result of the strong appreciation of the rupee against the dollar, the government has announced further measures in an attempt to negate the effects.
These include a 3% enhancement of the Duty Entitlement Pass Book (DEPB) rates for nine sectors including leather products; a 10% reduction in the Export Credit Guarantee Corporation (ECGC) premium; a 10% increase in the rates of duty drawback to 40%; 2% interest subvention for pre-shipment and post-shipment credit for the same nine sectors as above; a refund of Service Tax to exporters for use of services not in the nature of “Input Services”; and the provision to pay interest on Exchange Earners Foreign Currency (EEFC) balances for outstanding balances.
