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MoC announces export incentives for over 600 products

14 Feb '11

3 min read

Shri Anand Sharma, Union Minister of Commerce & Industry, interacting with the media persons here, announced further export incentives for more than 600 products w.e.f. 1/1/2011 in the sectors viz., agriculture, chemicals, carpets, engineering, electronics and plastics, to enhance the competitiveness for products which are labour-intensive and technology intensive.

He informed that the export target of US $ 200 billion will not only easily be achieved but exports will go beyond that. He said that the with the export growth of 25% per annum, the exports will be doubled by 2014. In terms of percentage terms of exports, he said that it will be doubled by 2020. Dr. Rahul Khullar, Commerce Secretary and Dr. Anup K Pujari, Director General of Foreign Trade, were present during the event.

The salient features of these incentives are:

Export Incentives
1.1 Market Linked Focus Product Scheme (MLFPS):

1.1.1 335 New Products incentivised under MLFPS at 8 digit level, eligible for benefits @ 2% of FOB value of exports to 15 specified markets. These markets are Algeria, Egypt, Kenya, Nigeria, Tanzania, South Africa, Ukraine, Mexico, Brazil, Australia, New Zealand, Cambodia, Vietnam, China and Japan.These include Agricultural Tractors of more than 1800 cc; all inorganic chemicals and inorganic/organic compounds of metals of Chapter 28; Flexible Intermediate Bulk Containers; and Narrow Woven Fabrics.

1.1.2 71 new products of Chapter 63 – Textile Made ups at 8 digit level for exports to EU (27 Countries) under MLFPS have also been incentivised @ 2% of FOB value of exports.

1.2 Focus Product Scheme (FPS):
1.2.1 147 products incentivised for Bonus Benefits (additional 2%) under FPS at 8 digit level, henceforth eligible for benefits @ 4% or 7% of FOB value of exports to all markets.

These include Engineering Items like Galvanized Flanges on Iron and Steel, Threaded Nuts (7%); Ferro & Silico Manganese; Electronic Items like co-axial cables and other co-axial electric conductors, Watches; Stationery items like Pencils, Pens; Textile Items like Silk (of Chapter 50), Grey Rayon Tyre Cord Fabric, and Handmade Carpets and other Floor Coverings under Chapter 57 (7%).

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