New Delhi, Mar 31: In a watershed Exim Policy, government announced a major package for exports of services, special focus on high growth sectors like textiles, auto, gems and jewellery and dismantled restrictions on export of five items like paddy, rare earth and cotton linters.
Unveiling the policy, Commerce Minister Arun Jaitely simplified procedures, made popular EPCG scheme more flexible and attractive and gave new thrust to agriculture exports.

This would be for the first time there would be simultaneous notifications of announcements by DGFT and CBEC to remove harassment to exporters. Besides giving special focus on potential high growth sectors like drugs and pharmaceuticals, electronics hardware, Jaitley announced development of ten new export clusters and steps to facilitate corporate investment to boost agro-products.
The new look Exim Policy aimed at building on areas of India`s core competence gives major boost to health care, entertainment, professional services and tourism in a bid to give massive thrust to export of services. Following are the other highlights of the policy:

  • The new annual policy is part of the five year Exim Policy, announced by Jaitley`s predecessor Murasoli Maran, who had envisaged an average 12 per cent annual growth to achieve 80 billion dollar worth exports by 2007 to reach one per cent share in the global merchanise trade from present level of 0.67 per cent.

  • It is almost certain that India`s merchandise exports will cross the USD 50 billion (approximately Rs 2,42,300 crore) milestone this year, commerce minister Arun Jaitley said here unveiling the new Exim Policy for 2003-04.

  • Exports during April 2002 to February 2003 amounted to Rs 2,23,249 crore as compared to Rs 1,87,876 crore during the same period in the previous year.

  • Textiles contributed Rs 45,509 crore as compared to Rs 41,809 crore during the previous year, representing a growth rate of 8.85 per cent, accounting for a share of 21.31 per cent in the total exports.

  • Gems and jewellery contributed Rs 38,032 crore as compared to Rs 30,453 crore in the previous year, representing a growth rate of nearly 24.89 per cent, accounting for a share of 16.97 per cent.

  • Chemicals and related products contributed Rs 32,805 crore as compared to Rs 27,518 crore with a growth rate of 19.21 per cent and a share of 14.64 per cent.

  • Engineering goods contributed rs 31,152 crore as compared to Rs 24,650 crore with a growth rate of 26.30 per cent and a share of 13.9 per cent.

  • “What is a matter of particular satisfaction is that the export of agriculture and allied products contributed Rs 18,907 crore as compared to Rs 17,320 crore in the previous year with a growth rate of 9.16 per cent and a share of 8.44 per cent,`` the minister said.

  • Duty free import facility for service sector having a minimum foreign exchange earning of Rs 10 lakh.

  • Corporate sector to sponsor agri export zones for boosting agro exports.


  • Duty-free import entitlement for status holders having incremental growth of more than 25 pc in fob value of exports (in foreign exchange).


  • Input-output norms for status holders to be fixed on priority basis within a period of 60 days.


  • To give a boost to electronic hardware industry, supplies of all 217 ITA-1 items from EHTP units to DTA shall qualify for fulfillment of export obligation.


  • To promote growth of exports in embedded software, hardware shall be admissible for duty free import for testing and development purposes. Hardware upto a value of 10,000 dollars shall be allowed to be disposed of subject to STPI certification.


  • 100 pc depreciation to be available over a period of three years to computer and computer peripherals for units in EOU/EHTP/STP/SEZ.
    • Bureau Report