Friday, April 11, 2008

Focus on price rise, export push in India's foreign trade policy

With a twin focus of curbing price rise and boosting trade, Commerce Minister Kamal Nath recast India's foreign trade policy Friday, that bans export of primary steel and extends fiscal sops to a range of industries.
The Foreign Trade Policy for 2004-09, which was reviewed before representatives of trade promotion organisations, also sets an export target of $200 billion for this fiscal, against an estimated $155 billion achieved last fiscal.
"The remarkable achievements in trade and commerce of the past four years gives me the confidence to spell out an even more ambitious target - of achieving 5 percent of world trade by 2020," Kamal Nath said.

"In practical terms, this means a four-fold increase in our percentage share in the next 12 years, he said, adding: "Ambitious the target may be, but achieving it is not impossible".

Some of the highlights of the policy recast include:

- Extension of duty entitlement passbook scheme by another year

- Duty cut on export promotion capital goods scheme to 3 percent

- One-year extension of lower interest rates for small exporters

- One-year extension of tax exemption for export oriented units

- Relief to sectors affected by rupee appreciation

- New export promotion council for telecom sector

- Sops for exporters of toys, sports goods

- Cement exports banned

- Export of primary steel banned to curb prices

- All sops withdrawn on export of steel

- 10 more countries added to focus market scheme

- Computer hardware also under special focus initiative

Indo-Asian News Service

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