Seeking to aggressively pursue export of products to China and Japan, the Central Government on Tuesday announced inclusion of both the countries in the Market Linked Focussed Programme (MLFP) scheme and unleashed incentives worth Rs. 450-500 crore for exporters, especially those in the labour intensive sectors.
Seeking to build further on the recovery happening since November in the exports arena, Union Commerce and Industry Minister Anand Sharma told newspersons here that the sectoral package includes expansion of the Focussed Product Scheme (FPS) and Special FPS under which exporters are given 2-3 per cent incentives. “Both China and Japan were being included under the Market Linked Focused Programme under which exports to specified countries are provided sops,” he added.
Unveiling these measures, Mr. Sharma said these would be effective from tomorrow [January 13] and the burden would be borne by the internal budget of his Ministry. After 13 months of contraction, exports showed a recovery during November and December growing by 19 per cent and 10 per cent respectively.
Major sectors which have been given additional incentives include engineering, electronics, rubber, chemicals, plastics, carton boxes and egg powder. Other sectors that will also benefit under the various measures include hand tools, parts of agriculture and horticulture machinery, sewing machines and parts, liquid pumps, nuts, bolts, washers, screws, staplers, and parts of machinery for soldering, brazing and welding.
Mr. Sharma said exports rose for the second consecutive month to $14.6 billion in December, a growth of 9.4 per cent over November.
“Although the country’s exports have moved to a positive terrain in the past two months, the economy is yet to recover from the losses resulted from 13-months of continuous fall in exports. Export growth could maintain momentum moving ahead,” he said.