Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance International and Trade – I - university paper

v. Identifying and nurturing various special focus areas to facilitate development of India as a global hub for manufacturing, trading and services.

Foreign Trade Policy

2. Special Focus Initiatives

· Sectors with significant export prospects coupled with potential for employment generation in semi-urban and rural areas have been identified as thrust sectors, and specific sectoral strategies have been prepared. Further sectoral initiatives in other sectors will be announced from time to time. For the present, Special Focus Initiatives have been prepared for Agriculture, Handicrafts, Handlooms, Gems & Jewelry and Leather and Footwear sectors.

The threshold limit of designated. Towns of Export Excellence is decreased from Rs.I ,000 crore to Rs.250 crore in these thrust sectors.



3. Package for Agriculture

The Special Focus Initiative for Agriculture includes:

· A new scheme called Vishesh Krishi Upaj Yojana has been introduced to boost exports of fruits, vegetables, flowers, minor forest produce and their value added products.Duty free import of capital goods under EPCG scheme.

Capital goods imported under EPCG for agriculture permitted to be installed anywhere in the Agri Export Zone.

ASIDE funds to be utilized for development for Agri Export Zones also. Import of seeds, bulbs, tubers and planting material has been liberalized. Export of plant portions, derivatives and extracts has been liberalized with a view to promote export of medicinal plants and herbal products.

4. Gems & Jewelry

· Duty free import of consumables for metals other' than; gold and platinum allowed up to 2% of FOB value of exports.

Duty free re-import entitlement for rejected jewelry allowed up to 2% of FOB value of exports.

Duty free import of commercial samples of jewelry increased to Rs.I lakh. Import of gold of 18 carat and above shall be allowed under'. the replenishment scheme.

5. Handlooms & Handicrafts

· Duty free import of trimmings and embellishments for Handlooms and Handicrafts sectors increased to 5% of FOB value of exports.

· Import of trimmings and embellishments and samples shall be exempt from CVD.

· Handicraft Export Promotion Council authorized to import trimmings, embellishments and samples for small manufacturers.

· A new Handicraft Special Economic Zone shall be established.

Earning:   Approval pending.