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 incentives will cost the government Rs1,050 crore, commerce minister Anand Sharma said today.
In a review of the foreign trade policy (FTP), Sharma announced a six-month extension of the Duty Entitlement Pass Book scheme (DEPB), which will now expire on 30 June 2011. Under this scheme, the government reimburses duties on imported inputs used in export-oriented manufactures.
The zero duty on the Export Promotion Capital Goods Scheme (EPCG) scheme has also been extended by a year. Besides, the government has introduced bonus schemes for handicrafts and leather.
The interest subvention plan of 2 per cent each for leather, jute and textiles has also been extended. Currently, the scheme is for sectors like handicrafts, handlooms, carpets and small and medium enterprises.
The scheme is to expire on 31 March 2011. Under the scheme, banks provide loans at a rate lower by two per cent than the market rate. "A bonus incentive scheme is being introduced for those sectors whose exports are not doing well.
This specially covers labour intensive sectors like handicrafts, handlooms, leather and leather manufacturers, carpets, sports goods, toys and some bicycle parts," Sharma said.