Market Focus Product Scheme to strengthen market diversification

19 Jan '10

2 min read

Mr A Sakthivel, President, Federation of Indian Export Organisations (FIEO) welcomed the announcement made by the Hon'ble Commerce & Industry Minister, Mr Anand Sharma to add 112 new products in the focus product scheme and 5% special incentives for products such as Handtools, By-cycles, Nuts & Bolts, Washers, Sewing Machines, Horticulture and Agro Products which are also adversely affected due to appreciation of Indian rupee since they have virtually no import content.

FIEO Chief said that inclusion of China & Japan in the Market Linked Focus Product Scheme will help in addressing adverse trade balance with these countries which is becoming a cause of concern. Opening of warehousing in Latin America will resolve logistic issues and boost Indian exports to South America.

President, FIEO appreciated the Hon'ble Minister for taking up the issue of continuation of Interest Subvention Scheme with inclusion of the new products, availability of foreign currency credit at LIBOR+ 100 basis point and modification in crystallization of export bill with the Finance Minister which will add to competitiveness of Indian exports and will ensure availability of credit for exports at reasonable rates.

President, FIEO, however, reiterated that Government needs to extend Market Linked Focus Product Scheme to Garment sector also for export to EU and US as these markets are still not showing much improvement and Indian exporters need to continue in the market with aggressive pricing. He also added that stimulus given to export industry need to be continued in view of 14% appreciation of Indian rupee since March, 2009.

Federation of Indian Export Organisations

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