Duty drawback won't help, says Rajesh Exports

With an aim to increase jewellery exports, the government on Friday increased the duty drawback rate by Rs 73 to Rs 173.7 per gram on gold ornaments. Duty drawback is the refund of duties on imported inputs for export items. Rajesh Mehta, chairman of Rajesh Exports, tells NDTV Profit that this move is like giving a small sweetener after a bitter pill of customs duty hike. He says this move will not help at all since duty drawback rates were revised once duty was raised. Much more important relief to exporters would have been to provide speedier clearance of these drawback reimbursements, Mr Mehta adds.