New Delhi, Jan 13: Urging the Centre to fully address the issues connected with the exports in general and other important export commodities in particular, the J&K Finance Minister, Abdul Rahim Rather has pleaded for one year moratorium on payment of loans to protect carpet manufacturing sector that has received a crushing blow due to global meltdown, an official statement said.
Speaking at the pre-budget meeting of the State Finance Ministers held under the Chairmanship of the Union Finance Minister, Pranab Mukerjee at New Delhi today, Rather said that next year’s central budget should address the issues connected with the exports in general and other important export commodities in particular.
Rather said “Kashmir handicrafts and carpet weaving sectors are one of the important foreign export earners. The global meltdown has dealt a crushing blow to the carpet weaving activity.  The Kashmir Carpet exports went down by over 50 percent during the last year as compared to previous year. The current year’s export figures so far are dismal. “I suggest that the next year’s central budget may fully address the issues connected with the exports in general, and other important export commodities in particular. I would suggest that in order to protect our carpet manufacturing sector, the commercial banks may permit moratorium on payment of loans and charge nominal interest for one year”, he said and added that a scheme of sustenance of carpet weavers and other artisans may be introduced for a period of one year.
Rather also spoke about the Government of India’s special package for the industrially backward states including Jammu and Kashmir . He said “an important component of this package pertaining to exemption from Excise Duty was abruptly withdrawn before completing the announced period of admissibility. The State Government has taken up this issue with the Union Government and also requested for extension of the package in its original form for a further period of 10 years”. He requested the Union Finance Minister to take this aspect into account while going through his budgetary exercise.
While appreciating the Union Finance Minister for making pre-budget meetings with the State Finance Ministers an annual feature,   Rather said these meetings are very rewarding as “we get an opportunity to put across our view points and highlight other issues before the Union Finance Minister for his consideration and also receive some insight from him on the global and national economic issues, financial scenario and budgetary strategies”.
The Minister said that for the current fiscal, the Union Ministry of Finance had taken several bold budgetary initiatives to sustain the national economy despite the global economic meltdown. He said, despite the fact that these measures had to be implemented in a shorter time frame due to late passing of the budget caused due to holding of the parliamentary elections, they have produced encouraging results. “The economists world-wide are clearly naming India as one of the few countries who have come back to the path of recovery from the global economic slowdown”,   Rather added.
Rather said that despite the steep decline in the level of exports, the Indian economy has sustained itself broadly by whetting the domestic demand for goods and services. He said recently reported increase in exports during the pre festivity shipments to the USA and European Countries are encouraging signs particularly in the sectors of gems and jewellery and automobiles. He said that this fact, coupled with the trend in strengthening of Indian rupee is indicative of a positive development in terms of increased demand for Indian goods and services as also re-affirmation of the foreign investor’s confidence in Indian economy.
 “It is, therefore, strongly indicated that the fiscal and monetary measures introduced in the current year’s budget need to be continued for the next year as well”, Rather maintained.
The Minister said that one of the major areas of concern is the increasing inflation which is going to cut into the gains of the budgetary stimulus provided to the industry as it may act against the spurring domestic demands as also against the export opportunities in the days to come. Strengthening of rupee will be an added factor against exports, he added.
While deliberating on issues pertaining to the J&K State, which have a direct bearing on the Union Budget,   Rather said that last year, he had stated that the J&K State’s economic growth is largely stimulated by the government spending and an investment as its own economic base is narrow. “The Plan outlays for the next five years shall be greatly influenced by the Award of the Thirteenth finance Commission. The Commission was originally scheduled to give its report by 31st October, 2009. However, its recommendations have been presented before the President of India recently and are not known to the State as yet”, he said and added that the Union finance Ministry is expectedly working on its individual recommendations and will be presenting the Action Taken Report (ATR) of the government before the Parliament in the forth-coming budget session.

Lastupdate on : Wed, 13 Jan 2010 21:30:00 Makkah time
Lastupdate on : Wed, 13 Jan 2010 18:30:00 GMT
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