The Finance Minister Arun Jaitley today widened the duty drawback scheme to extend more support to the export sector.
"The duty drawback scheme has been widened and deepened to include more products and countries. The government will continue to take measures to support the export sector," Jaitley said in his Budget speech for 2016-17.
WATCH VIDEO:FM Arun Jaitley reads Budget document
Under the scheme, the government refunds duties on imported inputs for export items.
Exports dipped for the 14th month in a row, down 13.6 per cent in January to USD 21 billion due to fall in shipments of petroleum and engineering goods, although trade deficit showed improvement.
HIGHLIGHTS:Union Budget 2016
Imports shrank 11 per cent to USD 28.71 billion last month, resulting in a trade deficit of USD 7.63 billion, lowest in eleven months. In February last year, the deficit was USD 6.85 billion.
For the first 10 months of the current fiscal, cumulative exports declined by 17.65 per cent to USD 217.67 billion, as against USD 264.32 billion in April-January period of 2014-15.
FULL COVERAGE:Union Budget 2016