FOREIGN TRADE POLICY 09-14The UPA Government has assu office at a challenging time when the entire world is facing an unprecedented economic slow-down. The year 2009 is witnessing one of the most severe global recessions in the post-warperiod. Countries across the world have been affected in varying degrees and all major economic indicators of industrial production, trade, capital flows, unemployment, per capita investment and consumption have taken a hit. TheWTO estimates project a grim forecast that global trade is likely to declineby 9% in volume terms and

the IMF estimates project a decline of over 11%.The recessionary trend has huge social implications. The World Bank estimatesuggests that 53 million more people would fall into the poverty net this yearand over a billion people would go chronically hungry.Though India has not been affected to the same extent as other economiesof the world, yet our exports have suffered a decline in the last 10 monthsdue to a contraction in demand in the traditional markets of our exports.The protectionist measures being..... Ctd on page 2

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FTP OBJECTIVE

• The short term objective of our policy is to arrest and reverse the declining trend of exports.

• To provide additional support especially to those sectors which have been hit badly by recession in the developed world.

• The long term policy objective for the Government is to double India’s share in global trade by 2020.

And How Govt. Will achieve....

Steps taken by Govt.

Promotional Measures

• ASIDE- Assistance to State for Developing Export Infrastructure and Allied Activities.- The objective of scheme is to establish a mechanism for involving the State Governments to participate in funding of infrastructure critical for growth of exports

MAI- Market Access Initiative- financial assistance for medium Initiative (MAI) term export promotion efforts

MDA – Market Development Assistance -financial assistance is provided

for a range of export promotion activities implemented by EPCs and Trade Promotion Organizations

•Meeting Expenses for statutory compliances in buyer country for trade related matter –

DOC provides for reimbursement of charges/expenses

statutory compliances in for fulfilling statutory requirements in the buyer country,•Town of Export Excellence - Selected towns producing goods of Rs. 750 Crore or more will be notified as TEE

Rewards/ Incentive Schemes

• SFIS- Served from India Scheme

Objective is to accelerate growth in export of services so as tocreate a powerful and unique ‘Served From India’ brand, instantly recognized and respected world over.

• VKGUY- Vishesh Krishi Gram Udyog Yojana

For exports made w.e.f 2 7.8.2009, some Flowers,Fruits, Vegetables and other products, shall be entitled to an additional duty credit scrip equivalent to 2 % of FOB value of exports over and above the 5 % or 3 % VKGUY reduced rate entitlement instead of 5/3.5% in prev. policy

FMS- Focus Market Scheme- Objective is to offset high freight cost and other externalities to select

international markets with a view to enhance our export

Exporters of all products to notified countries shall be entitled for Duty

Credit Scrip equivalent to 3 % of FOB value of exports in comparison to 2.5 % in prev. policy

FPS- Focus Product Scheme

Exports of notified products shall be

entitled for Duty Credit scrip equivalent to 2 % of FOB

value of exports in comparison to 1.25 % in prev. policy

Duty Exemption and Remission Schemes

• Advance Authorisation Scheme -In case of Authorisation for import of Tea, minimum under Advance Authorisation shall be 50% in comparison to 100% in prev. policy

• Duty Entitled PassBook Scheme- Objective of DEPB is to neutralise incidence of customs on import content of export product.

• extended till march 2010

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