Trade Policy

In an attempt to boost exports, the government has announced a bagful of stimulus measures in the review of the Foreign Trade Policy (FTP) 2009-2014. The fresh export promotion sops will cost Rs 1050 crore, says Commerce Minister Anand Sharma.

In the review, Sharma has announced a six-month extension of the Duty Entitlement Pass Book scheme (DEPB) which will now expire on 30 June 2011.

Even zero duty on Export Promotion Capital Goods Scheme (EPCG) scheme has been extended by a year.

The government has introduced bonus schemes for handicrafts and leather. Interest subvention plan of 2% each for leather, jute and textile have also been extended.

Informing that the govt is on track to achieve USD 200 billion export in FY11, Sharma said that recovery in exports have been so far fragile. The government is keen to cut down transportation costs by 40%.

Sharma is concerned that it is still difficult to make policy on trade due to uncertainty while exports are still facing challenges in global markets. He has also said that response to economy recovery will be aptly calibrated and is prudent to preserve with last year’s policy stance.

However on an optimistic note, he said that India’s pact with Association of Southeast Asian Nations (ASEAN) countries will provide new expansion avenues. He also informed that India is in talks for comprehensive trade pact with Japan and Malaysia.