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New Foreign Trade Policy

2009-14

Presented by,
Rachita Masand
Prerana Sharma
&
Shivaji Saha
THE SCORECARD
AREAS UNDER TARGET ACHEIVEMENTS
CONSIDERATION

GLOBAL EXPORTS $ 200 BILLION $168

GLOBAL DOUBLE OUR 0.83% TO 1.45%


MERCHANDISING SHARE FROM THE
2003-04
GLOBAL SERVICES INCREASE 1.4% TO 2.8%
EXPORT SUBSTATIALLY
(ONLY SERVICES)

GOODS AND INCREASE 0.92% TO 1.64


SERVICES SUBSTANITALLY
THETHE CURRENT OBJECTIVES
CURRENT OBJECTIVES
1) INCREASE THE AMOUNT OF EXPORTS.

2)REVIVE THE SECTORS.

3)EXPAND THE MARKETS


SOME SCHEMES
• Focus Market Scheme
There were 26 new markets
added.
E.g.- Egypt, Kenya, Australia,
Brazil,
New Zealand etc.
Duty credit increased to 3%
from 2.5% of the FOB
value.

• Focus Product Scheme


Products now include auto and
engineering components.
Duty credit increased 2% from
1.25% of FOB and to 5 percent
for special focus products (E.g.-
handicrafts ).
Market Linked Focus Product Scheme
Now includes pharmaceuticals, synthetic textiles, certain iron and steel products,
aluminium, and markets extended to Africa, Latin America, Vietnam, Cambodia,
Australia and New Zealand.
Duty credit raised to 2% from 1.2% on FOB value of exported goods.

Served From India Scheme


Eligibility is foreign exchange worth Rs.10 lakhs but for individuals its Rs.5 Lakhs.
Credit of 10 percent of the free foreign exchange earned in each fiscal year.
E.g:-Professional Services, Computer Related services, Hotels, Restaurants,
Educational Services, Research and Development services, Communication
Services.

Towns of Export Excellence


Towns producing and exporting goods worth Rs.150 Cr.
Bhilwara(Rajasthan) Textiles ,Surat(Gujarat) for Diamonds and Panipat(Haryana)
for Blanket
Trade bans
TRADE BANS
COUNTRY ITEM
IRAQ ARMS AND RELATED
MATERIAL
IRAN MATERIALS, TECHNOLOGY,
EQUIPMENT HELPING IN
THEIR NUCLEAR
ENRICHMENT PROGRAM.

VENEZUELA ROUGH DIAMOND


DEMOCRATIC PEOPLE’S ANY MATERIALS,
REPUBLIC OF KOREA TECHNOLOGY, EQUIPMENT
CONTRIBUTING TO THEIR
MISSILE PROGRAM
Thrust Sectors
foreign trade policy (09-14)
Gems and Jewellery-getting
lustrous
• Diamond bourses
• Increase in the limit of personal carriages
 overseas exhibitions($5 mill.)
 samples for export promotion($1 mill. )
• Import on consignment basis of cut and
polished diamonds
• duty drawback (refund) allowed
on gold jewelry
AGRICULTURE
• Vishesh Krishi and Gram Udyog Yojana
• Agri Export Zones(AEZ)-
capital goods imported under EPCG
funds shall be earmarked under ASIDE
units in AEZ shall be exempt from bank
guarantee under EPCG
• Import of inputs such as pesticides
• Towns of export excellence-threshold limit 250
Cr.
Leather and footwear
• Enhancement of duty credit scrip under
Focus Product Scheme (FPS)
• “Zero Duty” under Export Promotion
Capital Goods Scheme (EPCG)
• Re-export of unsuitable imported
materials
• Increase in the limit for
duty free entitlements of import
trimmings, embellishments
and footwear components
Other Sectors
• Marine-adjustment assistance
scheme to be continued till march 2010,
Additional flexibility under
Target Plus Scheme (TPS) / Duty Free Certificate of
Entitlement (DFCE) Scheme for Status Holders
• Pharmaceuticals-Export obligation period
(EOP) has been extended from 6 months to 36 months,
pharmaceuticals a part of MLFPS
• Tea-bought under VKGUY, minimum value addition under
advance authorization scheme for export
of tea has been reduced from the existing 100% to 50%.
BAG OF MIXED REACTIONS
• Textile industry unhappy:
 Only one per cent
additional duty scrip for
status holders
 Zero duty under EPCG
Scheme would not benefit
• The apprehension of farmers
small and medium in the south plantation
exporters states regarding FTA
• Handloom sector is hopeful
OLD WINE, NOT-SO-NEW-
BOTTLE
• No major steps have been taken to
address the slowdown in exports
and provide a fillip to exports
• FTP should have addressed:
 Timely export credit at
internationally competitive rates
 Providing inputs at international
prices
 Safeguard to exporters against
dollar fluctuations
 Review of DEPB scheme in
compliance with WTO
CHILL PILL for EXPORTERS
 Inter-ministerial group to address issues raised by exporters 
 New directorate of trade remedy measures to be set up
 Obligation under EPCG relaxed 
 Steps to help exporters reduce transaction costs 
 Single-window scheme for farm exports 
 Export units allowed to sell 90% of goods in domestic market 
 Provision for state-run banks to provide dollar credits 
 Number of duty-free samples for exporters raised to 50 pieces from
15 
CONTINUING THRUST -EXPORT
TARGET