Export subsidies will help but we should aim to be globally competitive

Last week, the government approved the Export Promotion Mission (EPM) package of ₹25,060 crore and the Credit Guarantee Scheme for Exporters (CGSE) of ₹20,000 crore. Naturally, the exporters have welcomed the schemes because some subsidies and loans will come their way. However, I am not too enthused by such schemes because similar announcements earlier have not helped us achieve even a compounded aggregate growth rate (CAGR) of 3 per cent in exports or increase our share of global merchandise exports beyond 1.8 per cent in the past 11 years.

- TNC RAJAGOPALAN

The schemes are well intentioned and look impressive on paper. However, past experience shows that the government makes big announcements but actual allocations or disbursements turn out to be much lower. For example, the scheme for Remission of Duties and Taxes on Export Products (RoDTEP) that was touted as a ₹50,000 crore package. The actual allocations and disbursements are less than a third of that amount.