The Ministry of Commerce on April 11, 2008 announced annual
supplementary to foreign trade policy 2004-09 for the year
2008-09. In the new policy, Commerce and Industry Minister
announced that popular export benefit scheme would be
extended for another one year, relief on export obligation
would be given to exporters, facing difficulties due to
rupee appreciation and incentives on cement and steel
exports would be withdrawn to curb domestic inflation.
The important highlights of the annual foreign trade policy
2008-09 are—
Export target has been set for 2008-09 at $ 200 billion,
almost 30% higher than last year’s $ 155 billion.
DEPB scheme extended till May 2009.
Reduced interest rates for rupee–hit and small exporters
extended for another one year.
Average export obligation under EPCG scheme lowered.
Fiscal incentives for the exports of some fruit, vegetable
and flowers.
100% income tax exemption for EOUs (Export-Oriented Units)
for another one year.
Additional 5% creidt for toys and sports good expots.
The Ministry of Commerce on April 19, 2007 announced the
third annual supplement of the foreign trade policy 2004-09
for the year 2007-08. In its foreign trade policy for the
current year 2007-08, Commerce Ministry has announced that
all services rendered abroad or export-oriented services
delivered in India have been exempted from 12·24% service
tax. As per declaration of the policy, the developer and
co-developer of the special economic zones (SEZs) would be
entitled to all-duty exemption and remission schemes like
the advance authorisation scheme, and Duty Entitlement Pass
Book and Duty Free Import Authorisation.
Adopting optimistic view with last years export
performances, the Commerce Ministry revised the export
target for 2007-08 to $ 160 billion, i.e., $ 10 billion over
the original forecast. For 2008-09, a more ambitious target
of $ 200 billion has been set. It is worthnoting that the
merchandise exports have nearly been doubled to $ 125
billion in the year ending March 2007, from $ 63·84 billion
in March 2004. The doubling in three years represents an
annual compounded growth of 25 per cent compared to 12·73
per cent in the previous three years.
The new foreign trade policy 2007-08 has also revamped the
status-holders’ scheme. Under the scheme to classify
exporters, the categories have been re-christened as Export
House (earlier known as One Star Export House), Star Export
House (earlier known as Two Star Export House), Trading
House (earlier known as Three Star Export House), Star
Trading House (earlier known as Four Star Export House) and
Premier Trading House (earlier known as Five Star Export
House). The exporters will be granted such status on
achieving aggregate exports of Rs. 20 crore, Rs. 100 crore,
Rs. 500 crore, Rs. 2,500 crore and Rs. 10,000 crore,
respectively, over the four years period. Merchant as well
as manufacturer exporters, service providers, export
oriented units and units located in special economic zones,
agri export zones, electronic hardware technology parks,
software technology parks, and biotechnology parks, are
eligible for applying for status as Star Export Houses.
