New FTP to encourage domestic production in India

05 Jun '12

2 min read

Welcoming the new foreign trade policy of the government, apex industry body The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said that new foreign trade policy extends the interest subvention scheme for another year and expand its coverage to other labour-intensive sectors.

ASSOCHAM is glad that import entitlement scripts against exports accumulated by the exporters could now be used for procurement of domestic product without paying excise duty.

“This will also encourage domestic production at a time when industry is reeling under the slow down. Besides, the scope for EPCG has also been extended which is used by the textile sector” added Mr. D S Rawat, Secretary General, ASSOCHAM.

“Considering that South East Asian Countries are currently showing a healthy growth trend, India should put special emphasis on export to these regions to take advantage of their buoyant market which will in turn boost India's exports,” said Mr Rawat. “Europe and the US economies have slowed down and India needs to shift its focus to other countries.”

ASSOCHAM further suggested that technology content of Indian exports should be increased and for this purpose, the NMCC (National Manufacturing Competition Commission) should formulate dedicated manufacturing industry development strategy for increasing high technology exports from India.

Associated Chambers of Commerce and Industry of India (ASSOCHAM)

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