“We are examining measures to neutralise some of the levies which are not being refunded at the moment,” Union Commerce & Industry Minister Kamal Nath told reporters on the sidelines of a Ficci function. He said the measures to be announced in the FTP review would be WTO-compatible.

He said the ministry is working on new schemes to ensure that exporting sectors, which are hit by rupee appreciation but have potential for quantum growth, are given support.

 “We are examining what relief can be given to exporters especially in the employment generating sectors and the sectors to which we want to give a priority,” Mr Kamal Nath said.

Asked whether the country would be able to achieve the $160 billion export target in the wake of US slowdown and rupee rise, he said, “I am still hopeful... but we may be a little bit short.” Mr Kamal Nath, however, was confident that exports of $152-155 billion would be achieved as indicated by the present rate of above 20 per cent growth.

Hedging ruled out

Mr Kamal Nath said the government is not considering the option of hedging for exports as that was “not sustainable and credible in the long term.”

The rupee has appreciated by 9.78 per cent between April 2007 and January 2008, impacting exporters’ margin and competitiveness in the global markets.

Mr Kamal Nath further said the pre-Budget Economic Survey, released by Finance Ministry talks about Special Economic Zones being engines of growth and result in gains dispelling the “very concerns that the Finance Ministry has” on the revenue losses due to the special economic zones.