India’s Exports grew by 4.2% during April 2012 and again grew by 0.8% during January 2013 over the corresponding period of last year. The global economic crisis, the sovereign debt crisis in Europe and the economic slowdown in developed economies has adversely impacted demand for our exports. The imports have also been growing both because of higher prices of importable and increased demand. The international prices of petroleum, fertilizers, gold, edible oil etc. have increased. Their demand also has increased. These lead to a higher value of imports. As a result the trade deficit has increased. To increase our exports and reduce trade deficit a strategy paper to double our exports by 2013-14 was released in May 2011 as part of plan of action. In the wake of continuous economic slowdown which has impacted the trade, a number of measures / incentives as part of the Annual Supplement to Foreign Trade Policy were announced on 5th June 2012. DGFT has also undertaken a midterm review with detailed discussions with all the Export Promotion Councils and other stake holders. To give further boost to Export, new measures were announced on 26th December 2012 which includes widening of Focus Product Scheme and Focus Market Scheme. And similarly some additions have been made to MLFPS / VKGUY. Incremental Export Incentivisation Scheme has been introduced w.e.f 1.1.2013 whereby incremental exports made during the period January-March 2013 over the period January-March 2012 to specified countries would be eligible for the benefits. Two percent Interest Subvention Scheme has been widened to include 134 sub-sectors of Engineering Sector w.e.f 1st January, 2013. The validity of the scheme has been extended till March 31, 2014.

This information was given by the Minister of State for Commerce & Industry Dr. D. Purandeswari in written reply to a question in Rajya Sabha today.

DS/RK

(Release ID :92639)

Export Incentivisation measures expanded to widen focus schemes, introduce incremental export incentives and extend interest subvention. To boost exports and reduce the trade deficit, the government expanded export incentives under the Foreign Trade Policy and its Annual Supplement: widening the Focus Product and Focus Market Schemes, adding to sector-specific incentive schemes, introducing an Incremental Export Incentivisation Scheme for incremental shipments to specified countries, and extending a 2% Interest Subvention Scheme to additional engineering sub-sectors while prolonging scheme validity, following DGFT consultations with Export Promotion Councils.