Government sympathetic to export sector: FM

New Delhi, Feb 29: Stating that the government is sensitive to the needs of the export sector, Finance Minister P Chidambaram today said it will continue to respond sympathetically as the situation demands. In his Budget speech 2008-09, he said merchandise exports have come under some pressure due to the appreciation of the rupee and may fall short of the target of 160 billion dollars although the growth rate was strong at 21.8 per cent during April-December 2007-08.

He said the interest cost of sterlisation through market stabilisation bonds (MSS), estimated at Rs 8,351 crore for the whole years is in a sense subsidy to the export sector. Relief has been given to exports in three tranches amounting to over Rs 8,000 crores.

UNI