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THE DAILY NEWS

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FOREIGN TRADE POLICY 09-14


The UPA Government has the IMF estimates project a
assu office at a challenging decline of over 11%.
time when the entire world is The recessionary trend has
facing an unprecedented huge social implications.
economic slow-down. The The World Bank estimate
year 2009 is witnessing one suggests that 53 million
of the most severe global more people would fall into
recessions in the post-war the poverty net this year
period. Countries across the and over a billion people
world have been affected in would go chronically hungry.
varying degrees and all Though India has not been
major economic indicators of affected to the same extent
industrial production, trade, as other economies
capital flows, of the world, yet our exports
unemployment, per capita have suffered a decline in
investment and consumption the last 10 months
have taken a hit. The due to a contraction in
WTO estimates project a demand in the traditional
grim forecast that global markets of our exports.
trade is likely to decline The protectionist measures
by 9% in volume terms and being..... Ctd on page 2
FTP OBJECTIVE

• 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.
Promotional Measures

• 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
THANK YOU
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