Seeking to boost exports which slipped 1.76 per cent in 2012-13, government today unveiled a slew of incentives for exporters and announced a package to revive special economic zones (SEZs).
In annual supplement to the Foreign Trade Policy (FTP), announced by Commerce and Industry Minister Anand Sharma, the emphasis was on incentivising labour-intensive sectors like textiles, engineering and handloom.
The measures include extension of the popular EPCG scheme to all sectors, easing of land norms to set up SEZs and inclusion of more products and destinations under different schemes like Focus Product and Focus Market Schemes.
The Export Promotion Capital Goods (EPCG) scheme, which allows exporters to import capital goods at zero duty, would be extended beyond March.
"We have decided not only to extend the zero duty EPCG scheme beyond March 2013, but also merge it with 3 per cent EPCG scheme. Now, the zero duty EPCG benefit will be available to all sectors," Sharma said.
Government has also decided to further widen the interest subvention scheme to include items from engineering and textile sector. These sectors would be able to avail benefit during the period from May 2013 to March 2014.
At present, 2 per cent interest subsidy was available to certain specific sectors like handicrafts and carpets.
The steps, which come in the backdrop of exports falling to USD 300.6 billion in 2012-13 from USD 306 billion in the previous fiscal, will go a long way in providing much needed support for exports, Sharma
The industry, however, was divided in its response to the policy, with the apex exporters body FIEO saying that the minister did not come out with any big-ticket announcement.
"It was a routine policy. It has no bold or big-ticket announcements," said R Ahmed, President of the FIEO, which has been pressing for a USD 2 billion Export Development Fund.
On the other hand, export bodies like AEPC and EEPC welcomed the policy, saying it would give a boost to textiles and engineering exports.
