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Indian govt extends EPCG scheme to boost exports
Apr '13
Mr. Anand Sharma
Mr. Anand Sharma
The Government of India has announced a list of measures, including the extension of the Export Promotion Capital Goods (EPCG) scheme beyond March 31, 2013, to boost its declining exports.
In fiscal year 2012-13, India’s total exports declined by 1.76 percent year-on-year to US$ 300.6 billion, which increased the country’s trade deficit to US$ 190.91 billion.
Announcing the initiatives as part of the annual supplement to the Foreign Trade Policy (FTP), Commerce and Industry Minister Anand Sharma said the Government has decided to not only extend the EPCG scheme beyond March 2013, but also merge it with 3% EPCG scheme.
The EPCG scheme, which allows exporters to import capital goods (goods that are required in the production of a finished product, but do not form a part of the finished product, e.g. machinery) at zero-duty, would now be available to all sectors, the Minister said.
The exporters who have availed benefits under Technology Upgradation Fund Scheme (TUFS) administered by Ministry of Textiles, can also avail the benefit of Zero duty EPCG Scheme.
Further, to promote domestic manufacturing of capital goods, the quantum of specific Export Obligation (EO) in the case of domestic sourcing of capital goods under EPCG authorizations has been reduced by 10 percent.
Moreover, Norway and Venezuela have been respectively added under Focus Market Scheme (FMS) and Special FMS, taking the total number of countries under FMS and Special FMS to 125 and 50, respectively.
Approximately, 126 new products have been added under Focus Product Scheme (FPS), which include items from the textiles sector.
The Minister also announced sops for Special Economic Zones (SEZs) to boost shipments. Under the SEZ scheme, the minimum land area required for setting up a SEZ has been reduced to half.
In addition, the Government has also decided to allow transfer of ownership and sale of SEZ units.
Click here to read Highlights of Annual Supplement (2013-14) to the Foreign Trade Policy 2009-14.

Fibre2fashion News Desk - India

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