THE DAILY NEWS
www.dailynews.com NEWS WITH A DIFFERENCE
FOREIGN TRADE POLICY 09-14
The UPA Government has
assu office at a challenging
time when the entire world is
facing an unprecedented
economic slow-down. The
year 2009 is witnessing one
of the most severe global
recessions in the post-war
period. Countries across the
world have been affected in
varying degrees and all
major economic indicators of
industrial production, trade,
capital flows,
unemployment, per capita
investment and consumption
have taken a hit. The
WTO estimates project a
grim forecast that global
trade is likely to decline
by 9% in volume terms and
- Since 1879
the IMF estimates project a
decline of over 11%.
The recessionary trend has
huge social implications.
The World Bank estimate
suggests that 53 million
more people would fall into
the poverty net this year
and over a billion people
would go chronically hungry.
Though India has not been
affected to the same extent
as other economies
of the world, yet our exports
have suffered a decline in
the last 10 months
due to a contraction in
demand in the traditional
markets of our exports.
The protectionist measures
being..... Ctd on page 2
FTP OBJECTIVE

• The short term objective of our policy is to arrest and

reverse the declining trend of exports.

• To provide additional support especially to those sectors

which have been hit badly by recession in the developed
world.

• The long term policy objective for the Government is to

double India’s share in global trade by 2020.
And How Govt. Will achieve....
Steps taken by Govt.
Promotional Measures

• ASIDE- Assistance to State for Developing Export

Infrastructure and Allied Activities.- The objective of
scheme is to establish a mechanism for involving the
State Governments to participate in funding of
infrastructure critical for growth of exports
MAI- Market Access Initiative- financial assistance for
medium Initiative (MAI) term export promotion efforts
 MDA – Market Development Assistance -financial
assistance is provided
for a range of export promotion activities implemented by
EPCs and Trade Promotion Organizations
•Meeting Expenses for statutory
compliances in buyer country for trade
related matter –
DOC provides for reimbursement of
charges/expenses
statutory compliances in for fulfilling
statutory requirements in the buyer
country,
•Town of Export Excellence - Selected
towns producing goods of Rs. 750 Crore or
more will be notified as TEE
Rewards/ Incentive Schemes

• SFIS- Served from India Scheme

Objective is to accelerate growth in export of services so as tocreate a
powerful and unique ‘Served From India’ brand, instantly recognized and
respected world over.
• VKGUY- Vishesh Krishi Gram Udyog Yojana
For exports made w.e.f 2 7.8.2009, some Flowers,Fruits, Vegetables and
other products, shall be entitled to an additional duty credit scrip
equivalent to 2 % of FOB value of exports over and above the 5 % or 3 %
VKGUY reduced rate entitlement instead of 5/3.5% in prev. policy
FMS- Focus Market Scheme- Objective is to offset high
freight cost and other externalities to select
international markets with a view to enhance our export
Exporters of all products to notified countries shall be
entitled for Duty
Credit Scrip equivalent to 3 % of FOB value of exports in
comparison to 2.5 % in prev. policy

FPS- Focus Product Scheme

Exports of notified products shall be
entitled for Duty Credit scrip equivalent to 2 % of FOB
value of exports in comparison to 1.25 % in prev. policy
Duty Exemption and Remission Schemes

• Advance Authorisation Scheme -In case of Authorisation for

import of Tea, minimum under Advance Authorisation shall
be 50% in comparison to 100% in prev. policy

• Duty Entitled PassBook Scheme- Objective of DEPB is to

neutralise incidence of customs on import content of export product.
• extended till march 2010
THANK YOU
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