Major
fillip to textile sector
SPECIAL CORRESPONDENT NEW
DELHI, April 19, 2013
New trade policy aims at giving a big push to exports:
Sharma
Commerce and Industry Minister
Anand Sharma, on Thursday, unveiled the Foreign Trade Policy (FTP) for 2013-14,
containing a slew of measures which include, among others, extension of zero
duty Export Promotion Capital Goods (EPCG) scheme to all sectors, extension of
TUFs (Technology Upgradation Fund Scheme) benefits to EPCG, promotion of
incremental exports, widening the market and product focus scheme and extension
of interest subvention scheme till March 2014.
Majority of the measures are
aimed at giving a big boost to the labour-intensive handicrafts, handloom,
ready-made garments and man-made fabrics sectors which form a major chunk of
the textiles exports which have been on the decline for the past many months.
In addition, a new reformist policy for Special Economic Zones (SEZs) was
announced.
Announcing these initiatives as
part of the annual supplement to the FTP, Mr. Sharma said the measures were
primarily aimed at giving a big push to exports which showed a decline of 1.76
per cent to $300.6 billion during 2012-13 and, as a consequence, pushed up the
trade deficit to $190.91 billion.
Spelling out the details of the
policy, Mr. Sharma said the EPCG scheme, which allowed exporters to import
capital goods at zero duty, would stand extended beyond March 2013, and would
be applicable to all sectors. “We have decided not only to extend the zero duty
EPCG scheme beyond March 2013, but also merge it with 3 per cent EPCG scheme.
Now, the zero duty EPCG benefit will be available to all sectors,’’ he said.
The Commerce Minister also
announced that export obligation (EO) in the case of domestic sourcing of
capital goods under EPCG authorisations had been reduced by 10 per cent to
promote domestic manufacturing of capital goods. To encourage manufacturing
activity in Jammu and Kashmir, it was decided to reduce the specific EO to 25
per cent.
Mr. Sharma said at present 2 per
cent interest subvention scheme was available to certain specific sectors such
as handicrafts, handlooms carpets, ready-made garments, processed agricultural
products, sports goods and toys. He said the scheme had been further widened to
include 134 sub-sectors of engineering sector. Similarly, the new FTP widened
the scope of utilisation of duty credit scrip. Similarly, he said Norway had
been added under Focus Market Scheme, and Venezuela under Special Focus Market
Scheme, taking the total number under these two initiatives to 125 and 50,
respectively. “About 126 new products have been added under Focus Product
Scheme from sectors such as engineering, electronics, chemicals, textiles and
pharmaceuticals. About 47 new products have been added under Market-Linked
Focus Product Scheme (MLFPS) with two new countries — Brunei and Yemen - added
as new markets. The MLFPS has been extended from March 2013 to March 2014 for
exports to the U.S. and the EU,” he added.
Mr. Sharma said exports of
high-tech products would be incentivised. It would be notified separately by
June 30, he added. The Incremental Export Incentivisation Scheme had been
extended for 2013-14, he said. The government had also agreed to include
additional countries under this scheme. Fiftythree countries of Latin America
and Africa had been added with the objective to increase India’s share in these
markets, he said. In addition, imports of cars/vehicles had been permitted
through designated ports only which included ICD (Inland Container Depot), he
said.
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