2. Technological Upgradation : EPCG Scheme at zero duty has been introduced. This scheme will be available for certain specified sectors including apparel and textiles subject to exclusions of current beneficiaries under Technological Upgradation Fund Schme (TUFS) and beneficiaries Ol Status Holder Incentive Scheme in that particular year.
3. EPCG Scheme: Export obligation on import of spares, moulds etc. under EPCG scheme has been reduced to 50% of the normal specific export obligation.
Taking into account the decline in exports, the facility or re-fixation of Annual Average Export Obligation for a particular financial year, in which there is decline in exports from the country, has been extended to the 4 years policy period.
4. Status Holders : To accelerate exports and encourage technological upgradation, addition Duty Credit Scrips shall be given to status holders @ 1% of the FOB value of past exports.
5. DEPB/ECGC Cover:
(a) Duty Entitlement Pass Book (DEPB) has been extended beyond due date.
(b) DEPB rate will also include factoring of customs duty component to fuel where to allowed as a consumable product in standard input-output norms.
(c) The adjustment assistance scheme has been initiated.
6. EOUS: EOU has been allowed to sell products manufactured by them in DTA up to a limit 90% instead of existing 75% without changing the criteria of similar goods, within the overall Entitlement of 50% for DTA sale. EOUS will now be allowed to procure finished goods for consolidation along with their manufactured goods, subject to certain safeguards. During the period of downturn, Board of Approvals (BOA) to consider the extension of block period by one year for calculation of net foreign exchange earning of EOUS.
7. Value Added Manufacturing: In order to encourage value-added manufactured export, a minimum 15% of value addition on imported inputs under advance authorization scheme has now been prescribed
.
8. Waivers: Waiver of incentives recovery, on RBI specific write off allowed. In cases, where RBI specifically writes off the export proceeds realization, the incentives under the FTP shall now not be recovered from the exporters subject to certain conditions.
Q.4. Discuss the trends of foreign trade in India.
Ans. Trends in Exports: During financial year commodities/commodity groups registering significant increase in exports over the corresponding period of the previous details of India’s foreign trade.
Export included tea, coffee, wheat, seasame and niger seeds, groundnuts, oilmeals, guargum meals, shellac, floriculture products, processed foods, mica, coal, germs and jewellery, sports goods, chemicals and allied products (except residual chemicals), engineering goods, electronic goods, manmade textiles, made ups etc. jute manufactures, handmade carpets (excluding silk), cotton raw including waste and petroleum products. Major commodities registering a decline in export were rice, tobacco, spices, nuts and seeds, marine products, iron ore, processed minerals, residual chemicals and allied products, project goods, readymade garments, cotton yarn fabrics made ups, etc. wool and woollen manufactures, coir, handicrafts and carpets.
The export performance of some principal commodity groups are given below:
Plant Crops
Export of plantation crops increased by 6.7% in terms of rupee in the first 9 months compared with the corresponding period of the previous year. The increase in the export of plantation crops was mainly due to reasonably good performance of tea and coffee. Export of tea increased by 6.7% from 1137 crores during the first 9 months of last year to *1211 crores during the same period in
710 crores last year to 761 crores this year the current year. Exports of coffee also increased from registering a growth of 7.2%