THE DAILY NEWS
NEWS WITH A DIFFERENCE
- Since 1879
FOREIGN TRADE POLICY 09-14
The UPA Government has
assu office at a challenging time when the entire world is facing an unprecedented economic slow-down. The year 2009 is witnessing one of the most severe global recessions in the post-war period. Countries across the world have been affected in varying degrees and all major economic indicators of industrial production, trade, capital flows, unemployment, per capita investment and consumption have taken a hit. The WTO estimates project a grim forecast that global trade is likely to decline by 9% in volume terms and the IMF estimates project a decline of over 11%. The recessionary trend has huge social implications. The World Bank estimate suggests that 53 million more people would fall into the poverty net this year and over a billion people would go chronically hungry. Though India has not been affected to the same extent as other economies of the world, yet our exports have suffered a decline in the last 10 months due to a contraction in demand in the traditional markets of our exports. The protectionist measures being..... Ctd on page 2
• The short term objective of our policy is to arrest and reverse the declining trend of exports. • To provide additional support especially to those sectors which have been hit badly by recession in the developed world. • The long term policy objective for the Government is to double India’s share in global trade by 2020.
And How Govt. Will achieve....
Steps taken by Govt.
• ASIDE- Assistance to State for Developing Export Infrastructure and Allied Activities.- The objective of scheme is to establish a mechanism for involving the State Governments to participate in funding of infrastructure critical for growth of exports MAI- Market Access Initiative- financial assistance for medium Initiative (MAI) term export promotion efforts
MDA – Market Development Assistance -financial assistance is provided for a range of export promotion activities implemented by EPCs and Trade Promotion Organizations
•Meeting Expenses for statutory compliances in buyer country for trade related matter – DOC provides for reimbursement of charges/expenses statutory compliances in for fulfilling statutory requirements in the buyer country, •Town of Export Excellence - Selected towns producing goods of Rs. 750 Crore or more will be notified as TEE
Rewards/ Incentive Schemes
• SFIS- Served from India Scheme Objective is to accelerate growth in export of services so as tocreate a powerful and unique ‘Served From India’ brand, instantly recognized and respected world over. • VKGUY- Vishesh Krishi Gram Udyog Yojana For exports made w.e.f 2 7.8.2009, some Flowers,Fruits, Vegetables and other products, shall be entitled to an additional duty credit scrip equivalent to 2 % of FOB value of exports over and above the 5 % or 3 % VKGUY reduced rate entitlement instead of 5/3.5% in prev. policy
FMS- Focus Market Scheme- Objective is to offset high freight cost and other externalities to select international markets with a view to enhance our export Exporters of all products to notified countries shall be entitled for Duty Credit Scrip equivalent to 3 % of FOB value of exports in comparison to 2.5 % in prev. policy
FPS- Focus Product Scheme Exports of notified products shall be entitled for Duty Credit scrip equivalent to 2 % of FOB value of exports in comparison to 1.25 % in prev. policy
Duty Exemption and Remission Schemes
• Advance Authorisation Scheme -In case of Authorisation for import of Tea, minimum under Advance Authorisation shall be 50% in comparison to 100% in prev. policy • Duty Entitled PassBook Scheme- Objective of DEPB is to
neutralise incidence of customs on import content of export product. • extended till march 2010
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