Foreign Trade Policy Supplement - going in the right direction

Bikky Khosla | 15 Apr, 2008
The recently announced annual Foreign Trade Policy (FTP) update has come as a relief for the exim community - there is no doubt about that.

With the sector missing last year's target by $ 5 billion, Mr Kamal Nath has made the much-needed rectifications to see that the export target of $200 billion for 2008-09 is achieved.

I think the export-import community needs to be congratulated for the fact that despite setbacks on account of rupee appreciation, high interest rates and spiralling prices of inputs, last year's figures would have been worse had it not been for their untiring efforts.

Now, measures announced this time including extension of the Duty Entitlement Pass Book (DEPB) Scheme, income tax benefits to EOUs (export-oriented units), providing duty credit benefit for encouraging exports of toys and sports goods, extending interest subvention, extending focus market scheme to 10 more countries will indeed provide the thrust to boost exports.

Although I was expecting a deeper cut in duty, nevertheless, the reduction to three percent from the earlier five percent under the Export Promotion Capital Goods (EPCG) scheme is not a bad step to begin with.

All in all, the Annual Supplement to the Foreign Trade Policy has given enough reasons to exporters to smile about.