The annual Budget is over and contrary to expectations. It has been more on the lukewarm side for exporters, who say that it left much to be desired, a reason why they are now pinning all hopes on the foreign trade policy in August to give them the much-required edge.

Down but not out, is exactly how exporters in the country feel post the Budget. While it did provide exporters with some very essential breathing space through measures like the extension of interest subvention on pre shipment credit and extension of ECGC benefits to March 2010 and 148 per cent increase in new market Development Access scheme.

The industry claims that there is still room for much improvement and that is exactly what exporters will now look forward to from the Foreign Trade Policy next month.

For instance, expanding the benefit on focused product scheme from the current 2 per cent to 5 per cent, as well as extending the scheme's validity from current September 2009 to December 2010.

Rakesh Vaid, chairman of AEPC, said, “The transaction costs will also have to be brought under control and the only way of doing so is simplifying the tedious and long, time taking procedural issues."

The Textile Minister seems to be of the same opinion.

Dayanidhi Maran, Textile Minister, said, “Whatever is not in the Budget, exporters might get some shelter in the foreign trade policy."

Now, all eyes are now on the foreign trade policy due in August that could provide exporters with the much needed respite in reduced transactions costs, which will give them that much more headroom for capital infusion in the current times of cash crunch.