Export sector, industry welcome FTP measures

Top Stories

»	US tariffs on Indian goods among lowest after trade deal
»	Indian rupee trades over 1 pc higher after US trade deal
»	US to drop 25 pc tariff linked to India’s Russian oil purchases: White House
»	‘Made in India’ products will now have reduced tariff of 18 pc in US: PM Modi
»	Union Budget: Defence soars to Rs 7.85 lakh crore, big bets on electronics, biopharma and railways

SME Times News Bureau | 05 Jun, 2012
The Indian industry and the export sector have warmly welcomed the annual supplement to the FTP 2009-14 announced by Commerce & Industry Minister Anand Sharma on Tuesday.

"In the wake of contraction of global demand and impending Euro zone crisis , the support extended through FTP is tremendous and will help in imparting competitiveness to exports," said the Federation of Indian Export Organisations (FIEO).

In a press statement, FIEO President M. Rafeeque Ahmed added that extension of interest subvention to include processed agricultural products, ready made garments and toys & sports goods besides carpets, handicrafts, handloom and SMEs till March 2013 is great relief to export sectors.

In addition, post export EPCG will help in reducing transaction and additional window may be availed by large number of companies who are averse to managing large documentation requirement of EPCG, said the FIEO chief.

Ahmed also welcomed the focus of policy is on North East, reduction of export obligation under EPCG to 25 %, 1% additional benefits exports through land customs, domestic sourcing under status holder incentive scrip and agri incentive scrip, and support given to E commerce, and formation of a Committee to look into various aspects of E-Commerce.

Federation of Indian Chambers of Commerce and Industry (FICCI) also viewed that the forward-looking measures will help boost exports and achieve this year's target of 20% increase.

"The positive move of allowing duty-free scrips under export promotion schemes for payment of excise duty is worth special mention. This is indeed significant and will help exporters in procuring from domestic manufacturers" said FICCI President R V Kanoria.

He expressed satisfaction in the continuation and expansion of interest subvention scheme as well as continuation of zero duty EPCG scheme.

Kanoria, however, cautioned that exporters would not be able to achieve the desired results unless the fundamentals of the overall economy improve. "Export promotion measures would have to be accompanied by steps to contain our rising imports," he pointed out.

The Apparel Export Promotion Council (AEPC) also expressed happiness on the announcement of Annual Supplement of the FTP.

". . . this is the first time when the Commerce and Industry Minister has given whatever demands AEPC made on behalf of apparel sectors; demands included: 2% Interest Subvention, 2% Market Linked Focus Product Scheme to USA & EU and for giving a new post export EPCG Scheme are all met,” AEPC Chairman A Sakthivel said.