EXPORT PROMOTION SCEHEMES

A. B. C. D. E. Target plus scheme to accelerate growth of exports. Vishesh krishi upaj yojna for agro-exports. Served from India scheme Additional flexibility under EPCG Import of fuel under DFRC entitlement allowed to be transferred to marketing agencies authorized by Min of Petroleum and Natural Gas. F. The DEFB scheme will be continued. G. EOUs shall be exempted from Service Tax in proportion to their exported goods and services. H. A scheme to establish Free Trade and Warehousing Zone is introduced to create trade-related infrastructure to facilitate import and export with freedom to carry out trade transactions in free currency. In order to showcase India's industrial and trade prowess to its best advantage and leverage existing facilities to enhance the quantity of space and service the govt plans to transform Pragati Maidan into a world-class complex with visitor friendliness ingress and egress system. A Note on Special Economic Zones (SEZ) SEZ are growth engines that can boost manufacturing, augment exports and generate employment. The private sector has been actively associated with the development of SEZs. The SEZs require special fiscal and regulatory regime in order to impart a hassle free operational regime encompassing the state of the art infrastructure and support services. The proposed legislation on SEZs to be enacted in the near future would cover the concepts of the developer and co- developer , incorporate the provision of virtual SEZs, have fiscal concessions under the Income Tax and Customs Act, provide for Offshore Banking Units (OBUs) etc. Out of the 24 new Special Economic Zones (SEZs) approved for establishment (as on 31/3/2004), 3 SEZs at Salt Lake (Manikanchan), Indore and Jaipur have become operational and another two Zones are now ready for operation. The new SEZs are being set up largely by the State Governments or their agencies or by the private sector in association with the State Governments or by the private sector on their own. Periodic meetings are held by the Department of Commerce with the State Governments/promoters of the SEZs to expedite the projects. Eight SEZs at Kandla and Surat (Gujarat), Santa Cruz (Maharashtra), Cochin (Kerala), Chennai (Tamil Nadu), Vishakapatnam (Andhra Pradesh), Falta (West Bengal) and NOIDA (UP) converted from Export Processing Zones (EPZs) are operational. The Foreign Trade Policy is built around two major objectives. These are:

To double our percentage share of global merchandise trade within the next five years; and To act as an effective instrument of economic growth by giving a thrust to employment generation

The Govt. of India, Ministry of Commerce and Industry announce Export Import Policy every five years. The current policy covers the period 2002-2007. The

Export Import Policy (Foreign Trade Policy) is updated every year on the 31st of March and the modifications, improvements and new schemes are effective w.e.f. 1st April of every year.

Context of new Foreign Trade Policy

Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity. For India to become a major player in world trade, an all encompassing, comprehensive view needs to be taken for the overall development of the country's foreign trade. While increase in exports is of vital importance, we have also to facilitate those imports which are required to stimulate our economy. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. Thus, while incorporating the existing practice of enunciating an annual Foreign Trade Policy, it is necessary to go much beyond and take an integrated approach to the developmental requirements of India's foreign trade. The new Policy envisages merchant exporters and manufacturer exporters, business and industry as partners of Government in the achievement of its stated objectives and goals The new Exim-Policy is essentially a roadmap for the development of India's foreign trade. It contains the basic principles and points the direction in which we propose to go. By virtue of its very dynamics, a trade policy cannot be fully comprehensive in all its details. It would naturally require modification from time to time. We propose to do this through continuous updating, based on the inevitable changing dynamics of international trade

. It is in partnership with business and industry that we propose to erect milestones on this roadmap. With a view to doubling our percentage share of global trade within 5 years and expanding employment opportunities, especially in semi urban and rural areas, certain special focus initiatives have been identified for the agriculture, handlooms, handicraft, gems & jewellery and leather sectors.