Under the third annual supplement announced on 5th June 12, the government has again broadened some of the ongoing policy supports.
Diversification of Indian Exports with more products and markets
Foreign Trade Policy 2009-14, that is effective since 27th August 2009 and subsequent supplements have endeavoured to diversify products and markets through various incentive schemes. The enhancement of incentive rates have been notified in various annual supplements. The incentives structures have been based on the perceived long term competitive advantage of India in a particular product group and market. New emerging markets have been given a special focus to enable competitive exports. Additional resources have been made available under the Market Development Assistance Scheme and Market Access Initiative Scheme. Following are major schemes, helping the products and markets diversification objectives:
Focus Market Scheme (FMS) - FMS is to offset high freight cost and other externalities to selected (some) international markets with a view to enhance India's export competitiveness in these countries. Under FMS, there are categorizations of exports market into three categories. First category called 'Focus Market' has 83 countries where majority are small and from Latin America and Africa. Second category is called 'New Focus Market (NFM)'. There are now 36 countries under NFM. Third category is called "Special Focus Market (SPF)".