Govt. announces sops for exports revival | SupportBiz

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Govt. announces sops for exports revival

 
At the announcement of the foreign trade policy today, for financial year 2013-14, commerce minister Anand Sharma said that, the government has extended the zero percent Export Promotion Capital Goods (EPCG) Scheme to all sectors to boost the country’s overall exports business.

The scheme enables exporters to import machinery and equipment at affordable prices to produce quality products for the export market.

The initiative is expected to benefit India’s ailing manufacturing sector which is seeing a downturn owing to sluggish demand from global economies.

The 2 percent Interest Subvention Scheme, which was available only to handlooms, handicrafts, carpets and SMEs till 31st March 2012, has been extended till 31st March 2013 to other sectors like toys, sports goods, processed agricultural products and ready-made garments, in addition to the aforementioned four sectors.

Countries like Norway and Venezuela has been added to Focused Market Scheme while engineering, pharma and textiles have been added under Focused Product Scheme, said Sharma. The minister also added that, the trade agreement negotiations with EU are progressing very well and India should be able conclude the pact in the next couple of months.

The government had reduced the minimum area requirement for Special Economic Zones (SEZs) to encourage exports. For multi-product SEZs, the minimum area required now is 500 hectares from 1,000 hectares, for sector specific SEZs, the minimum area required now is 50 hectares from 100 hectares, while for IT SEZs no minimum land requirement is needed.

India’s overall exports declined by 1.76 percent ($300.60 billion) in FY12-13 due to global slowdown and negative growth in sectors like engineering and textiles. The country’s trade deficit during 2012-13 increased to $190.91 billion compared to$183.4 billion in the previous fiscal.