AROUND 140 LAKH NEW JOBS GENERATED IN EXPORT SECTOR
EXPORTS RISES FROM US Dollar 63 BILLION DURING 2003 04
TO US Dollar 162 BILLION IN 2007 08
KAMAL NATH ANNOUNCES TRADE FACILITATION MEASURES
Date : 26 Feb 2009
Location : New Delhi
Shri Kamal Nath, Union Minister of Commerce & Industry, while announcing the major trade facilitation measures (supplement to the Foreign Trade Policy), here today, said that a Special Package of Rs.325 crore would be provided for leather, textiles etc., for exports w.e.f. 1/4/2009 and added that export incentives have been provided for certain items like technical textiles, stapling machines, handmade carpets and dried vegetables. Shri Ashwani Kumar, Minister of State for Industry and Shri G.K. Pillai, Commerce Secretary also attended the function.
In a mitigating effort to boost export amidst global slowdown, the Minister said that the recognition slab for Premier Trading Houses based on export turnaround has been reduced to Rs.7500 crore from Rs.10,000 crore. Under EPCG (Export Promotion Capital Goods) Scheme, in case of decline of exports of the product (s) by more than 5%, the export obligation for all exporters of that product(s) will be reduced proportionately. This provision has been extended for the year 2009-10, for exports during 2008-09. He further added that export obligation period against advance authorisations has been extended up to 36 months.
Speaking on the occasion, Shri Nath said that from now on, for import of precious metals, following bodies have been added as nominated agencies viz., STCL Limited, Diamond India Limited, MSTC Limited, Gem & Jewellery Export Promotion Council and Star Trading House (only for gem & jewellery sector). He further added that import restrictions on worked corals have been removed to address the grievances of gems & jewellery exporters. He further added that authorized persons of gems & jewellery units in EOU will be allowed personal carriage of gold in primary form up to 10 kgs. in a financial year, subject to RBI and customs guidelines.
As regards DEPB (Duty Entitlement Pass Book) Scheme, Shri Nath informed that as of now, duty credit scrip can be used for payment of duty only on items which are under free category, as a change, this unitilisation is now extended for payment of duty for import of restricted items also; duty credit scrip under DEPB will now be issued without waiting for realization of export proceeds; value cap applicable under DEPB have been revised to two products.
For advance licence issued prior to 1/4/20002, the requirements of MODVAT/CENVAT certificate will be dispensed with in case of Customs Notification prescribed for payment of CVD. The procedural formalities for claiming duty drawback refund and refund of terminal excise duty for deemed exports have been further simplified. Shri Nath informed that reimbursement of additional excise duty levied on fuel would also be admissible for EOUs (Export Oriented Units). With regard to clarification issued by CBEC in respect of architechtural services, general insurance services, market research services, storage and warehousing services and knowledge and technology based services, the Minister said that if these services are used outside India they will be treated as export of services.
In order to boost rural exports, the Minister announced that a re-credit of 4% SAD, in case of payment of duty by incentive scheme scrips such as VKGUY (Vishesh Krishi and Gram Udyog Yojana), FPS and FMS, have been allowed.
Bhilwara in Rajasthan and Surat in Gujarat have been recognized as Towns of Export Excellence, for textiles and diamonds respectively.
In a measure to improve health infrastructure, Shri Nath said that export of blood samples is now permitted without licence after obtaining “no objection certificate” from Director General of Health Services (DGHS). He added that supply of an intermediate product by the domestic supplier directly from their factory to the Port against Advance Intermediate Authorisation for export by ultimate exporters, has been allowed.
Shri Nath announced that a new office of Directorate General of Foreign Trade will be opened at Srinagar to increase the export potential and employment generation. He further added that electronic message transfer facilities for advance authorisation and EPCG Scheme established for shipments from EDI (electronic data interchange) ports w.e.f. 1/4/2009.
While highlighting the achievement during 2004 to 2008, Shri Kamal Nath informed that India’s exports during 2003-04 was US $ 63 billion has now reached US $ 162 billion by 2007-08, recording an average annual growth rate in excess of 25%. The Minister added that for this year: “we hope to achieve a target of US $ 175 billion”. As a result of increased economic activity, the Minister said that, there is generation of about 140 lakh jobs in the export sector.
In the last 5 years, around 900 products relating to 10 sectors have been granted benefits under VKUGUJ and 100 products covering more than 10 sectors were granted benefits under the Focus Product Scheme. 763 new 100% EOUs commenced operations taking exports from Rs.23,590 crore in 2002-03 to Rs.1,61,281 crore in 2007-08 leading to employment generation of 323,755 person. In the Special Export Zones, there have been a phenomenal incremental investment of Rs.97,871 crore and direct employment provided to 231,629 persons. The exports from SEZ during 2005-06 was Rs.22,840 crore and the projected exports for the period 2008-09 would be Rs.90,000 crore, he informed.
In the last 5 years, under the Industrial Infrastructure Upgradation Scheme, 29 projects have been sanctioned throughout the country with an investment of Rs.1770 crore. Most ambitious infrastructure project is of DMIC (Delhi-Mumbai Industrial Corridor) which came with an outlay of US $ 90 billion. The project is expected to double employment, triple the industrial output and quadruple the exports from the region in 5 years.