Government on Wednesday announced incentives worth Rs 625 crore for exporters of garments, engineering, electronics and agro products even as the country’s merchandise exports rose by an impressive 34.8 per cent growth in February at USD 16.09 billion.

The garment sector, which is still reporting contraction in overseas shipments, will receive as much as Rs 400 crore worth of incentives for exports for about 300 items -equivalent to two percent of the export value, Commerce and Industry Minister Anand Sharma told reporters in New Delhi on Wednesday.

The dole-out would be given to the garment exporters under the Market Linked Focus Product (MLFP) scheme for shipments to the US and Europe- two of their biggest markets, Sharma said.

Besides, exports of 200 engineering, electronics and agro chemical items to 15 countries, including China and Japan, would be covered under the Market Linked Focus Product (MLFP) under which exporters can claim two per cent of their merchandise value for one year.

The incentives for the sector will be for six months starting April 1.

Reacting to the sops announcement, Federation of Indian Export Organisations (FIEO) President A Sakthivel said that the announcement of market linked focus product scheme for apparel, specified petroleum and electronic products will impart competitiveness to these sectors.