Exports of as many as 158 hi-tech products from sectors like engineering and electronics will get benefit under Focus Product Scheme (FPS), a move which will help in boosting the country's shipments.
New Delhi: Exports of as many as 158 hi-tech products from sectors like engineering and electronics will get benefit under Focus Product Scheme (FPS), a move which will help in boosting the country's shipments.
The products covered under FPS are entitled for 2 percent duty credit scrip and such benefits under the scheme will be available from August 15 this year.
The decision to incentivise exports of high tech products was announced by Commerce and Industry Minister Anand Sharma on April 18 during the Foreign Trade policy.
"It has been decided to include 158 products under FPS... Items from engineering, electronics, chemical and pharma sector have been covered under this list. Such benefits will be admissible for exports made w.E.F. 15.8.2013," an official statement said today.
The detailed list will be separately notified by Directorate General of Foreign Trade (DGFT).
To study the list of items eligible for such benefit, a task force was set up under the Chairmanship of Additional Secretary in Department of Commerce Rajiv Kher.
Objective of the FPS is to promote export of products which have high export intensity, employment potential, so as to offset infrastructural inefficiencies and other associated costs involved in marketing of these products.
The step will help in increasing India's exports, which has entered the negative zone after a gap of four months, recording a contraction of 1.1 percent in May and leading to a trade deficit of USD 20.1 billion, highest in the last seven months.
Welcoming the move, Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said that it would definitely give a push to export growth at this difficult time.
"India has the capability of producing Hi-Tech Products of international quality but so far have been lagging behind in this field and such support from the Government will help exporters find the markets for those products," he said.