Amid global economic problems, the government on Tuesday unveiled a seven-point strategy to boost exports which include extension of interest subsidy scheme by one year till March 31, 2013.
“We have now decided to extend the scheme (interest subvention) for another year till March 31, 2013 and expand its coverage to include other labour-intensive sectors namely toys, sports goods, processed agricultural products and ready made garments”, Commerce Minister Anand Sharma said while releasing annual supplement to the Foreign Trade Policy here.
“The underline philosophy of this year’s supplement is based on seven broad principles”, he said, adding these would include added thrust on employment-intensive industry and continuation of market diversification strategy.
The Minister also exuded confidence that India would be able to sustain 20 per cent export growth in the current fiscal.
“It is our expectation that with these measures, we shall be able to sustain an annual export growth of 20 per cent this fiscal”, he said.
India’s exports grew by 21 per cent in 2011-12 to touch USD 303 billion.
To encourage exports, the government came out with an interest subvention scheme under which two per cent interest subsidy was given to handlooms, handicrafts, carpets and SME sector.
The scheme, which has been extended by a year, was to end on March 31, 2012.
Highlights
Government aiming 20 per cent export growth in 2012-13
Two per cent interest subsidy scheme extended till March 2013
Zero per cent duty EPCG scheme for technology upgradation extended till March’13
Incentives for exports from north-eastern states
Shipments from Delhi, Mumbai through post, courier or e-commerce to get export benefits
Single revolving bank guarantee for different export deals
Seven new markets added to Focus Market Scheme
Market linked focus product scheme extended till March’13 for apparel export to USA and EU
Ahmedabad, Kolhapur and Shaharanpur new Towns of Export Excellence
Govt to come out with new guidelines to promote SEZs
Focus on market diversification to continue
Steps announced to reduce transaction cost of exports
Foreign Trade Policy document made more user friendly
Thirteen shows abroad to promote Brand India
Keywords: Foreign Trade Policy,
The decision to extend the subsidy scheme by one more year is a welcome move by the govt. from the perspective of exporters. Especially, in these days of turmoil, when the INR is fairing very badly against the other currencies, one crude way of reducing the trade deficit would be by encouraging and boosting exports. However, facilities and mechanisms need to be put in place in order to reduce the overall time spent in the transportation and storage of goods.
An important step for the government can take to aid the exporters/ importers of the country is to make seamless integration between DGFT and customs. All the policies proposed by the DGFT are actually implemented with the help of the customs. So for all practical purposes, custom formalities must be made more user friendly to help the trade community and not the Foreign Trade Policy document.
1. Create jobs to enable more consumption.
2. Creat an enabling infrastructure - this is needed to boost exports. What good are all these subsidies if firms can not get there wares to ports and airposts?
3. As it stands now and the near future EU's economy in shambles and fear of recession in USA, India should focus Focus more on developing and emerging economies in Asia, Africa and Latin America.
Welcome new export initiatives. Apart from present Port at Kandla and Mumbai, Government must decide and speedup in regards to Ubergaon Port to reduce cost on transport expenditure and time. Time is running out to catch up with the rest of world.
thanks to government, that is god decision ,
The scheme, which has been extended by a year, was to end on March 31, 2012 Why the delay??? Any advantage would be lost as orders for the year would have been already finalized.So what's the point.
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