Foreign Trade Policy 2004-09- Annual Supplement 2006
5. ‘FOCUS PRODUCT’ & ‘FOCUS MARKET’ SCHEMES
The other chief objective of the Foreign Trade Policy was providing a thrust to employment generation, particularly in semi-urban and rural areas. We are therefore introducing two new schemes to nurture this. We realized that certain industrial products can generate large employment per unit of investment compared to other products, and promoting their export would in turn give a thrust to their manufacture. This realization led to the formulation of the ‘Focus Product Scheme’ which aims to promote such exports.
The Scheme allows duty credit facility at 2.5% of the FOB value of exports on fifty percent of the export turnover of notified products, such as value added fish and leather products, stationery items, fireworks, sports goods, and handloom & handicraft items.
It is also necessary to penetrate markets, especially to which our exports are comparatively low. Some of our competitors are aggressively ‘occupying space’ in Latin America, in Africa and other destinations which Indian exporters have unfortunately been neglecting, perhaps due to high freight costs & undeveloped networks. But these are the markets of the future, and it is of strategic necessity that we enlarge our market share here.
For this we have a ‘Focus Market Scheme’ which allows duty credit facility at 2.5% of the FOB value of exports of all products to the notified countries.
The scrip and the items imported against it for both these schemes would be freely transferable.
These two Schemes would replace the Target Plus Scheme.
To take the benefits of foreign trade further to rural areas, the Vishesh Krishi Upaj Yojana is being expanded to include village industries based products for export benefits, and it is therefore renamed as Vishesh Krishi Upaj aur Gram Udyog Yojana – a rather long name, but one which adequately reflects its intent and coverage.
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