| The government is planning to lower the threshold limit from Rs 1,000 crore to Rs 250 crore in selecting 'towns of export excellence', in an attempt to boost exports of handloom, handicraft, fisheries and farm goods. The measure is part of a package of incentives being considered for these sectors in the national foreign trade policy to be announced on August 31. |
| Official sources told Business Standard that in order to given an added thrust to the cottage and handicrafts sector, the government is considering granting the benefits of export house status to export performance of Rs 5 crore in the preceding three licensing years from Rs 15 crore at present. |
| In addition to this, the commerce ministry is also considering allowing merchant exporters to undertake duty free import of embellishments/ consumables. The present policy restricts this facility to manufacturer exporters only. |
| The percentage of limiting duty free imports to 3 per cent of the total export performance of the preceding year is also likely to be increased to 5 per cent. |
| The government is also considering a special fund for technology upgradation of handicraft units in the wake of stiff competition from neighbouring countries like China, Philippines, Indonesia, Thailand etc, which have already adopted advanced technology in the handmade sector. |
| While the corpus has not been finalised yet, there are suggestions that a Rs 100 crore corpus will be created under existing schemes, such as the Textiles Upgradation Fund. |
| In order to allow easy availability of imported embellishments and consumables for small and cottage handicraft exporters, the government is also considering the grant of 'import shop status' to the Export Promotion Council for Handicrafts (EPCH).
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| Proposed measures |
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Sops lined up to boost exports of handicrafts
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First Published: Aug 21 2004 | 12:00 AM IST
