INCENTIVE PACKAGE TO BOOST EXPORTS
Date : 08 Mar 2010
Location : New Delhi
The Union Government has announced export incentives on 12.1.2010 for over 2000 items (at 8 digit ITC HS Code level) under Focus Product Scheme (FPS), Market Linked Focus Product Scheme (MLFPS) and Vishesh Krishi and Gram Udyog Yojna (VKGUY) under the Foreign Trade Policy (FTP) 2009-14. Further, Japan and China have been included in the MLFPS. Some of the items / sectors incentivised under the Schemes is Annexed.
The incentives announced by the government in FTP have contributed significantly to arrest the decline in exports in the wake of global slowdown. The recent incentives are aimed to support exports of the products/sectors including those that are still facing decline or slowdown in exports.
Export incentives announced in FTP 2009-14 on 12.1.2010 for exports w.e.f. 1-1-2010 onwards
1. New Products under Focus Product Scheme (FPS):
112 new products added under FPS at 8 digit ITC HS level, eligible for benefit in the form of Duty Credit Scrip @ 2% of FOB value of exports to all markets.
Major products / sectors include Engineering, Electronics, Rubber, Chemicals, Plastics, Carton Boxes and Egg powder.
113 new products at 8 digit ITC HS level categorized as Special Focus Products under FPS and given higher benefit @ 5% of FOB value of exports to all markets.
Major sectors include hand tools, bicycles, parts of agriculture & horticulture machinery, sewing machines and parts, liquid pumps, nuts, bolts, washers, screws, staplers, and parts of machinery for soldering, brazing and welding.
2. New Products and New Markets under Market Linked Focus Product Scheme (MLFPS):
1837 new products added under MLFPS at 8 digit ITC HS level, eligible for benefit @ 2% of FOB value of exports to specified markets.
Major sectors include Machine Tools, Earth moving equipments, Transmission towers, Electrical and Power Equipments, Steel Tubes, pipes and galvanized sheets, Compressors, Iron and Steel Structures, Auto components, Three wheelers and cotton woven fabrics. Chemicals have been included for benefit for a limited period of 6 months from 1.1.2010 to 30.6.2010.
Two new major markets, viz., Japan and China added under MLFPS for all the notified products under the Scheme, in addition to the existing 13 markets, viz., Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Ukraine, Brazil, Mexico, Australia, New Zealand, Cambodia and Vietnam.
3. New products under Vishesh Krishi and Gram Udyog Yojana (VKGUY):
Sesame seeds and minor coconut products added under VKGUY scheme, eligible for benefits @ 5% of FOB value of exports to all markets.
This information was given by Shri Jyotiraditya M. Scindia, Minister of State for Commerce and Industry, in a written reply in the Lok Sabha today.