Special Focus Initiatives

New Sectoral Initiatives to be announced

1B.1

With a view to doubling our percentage share of global trade within 5 years and expanding employment opportunities, especially in semi urban and rural areas, certain special focus initiatives have been identified for the agriculture, handlooms, handicraft, gems & jewellery and leather sectors.

Government of India shall make concerted efforts to promote exports in these sectors by specific sectoral strategies that shall be notified from time to time.

Further Sectoral Initiatives in other sectors will also be announced from time to time.

For the present, the thrust sectors indicated below shall be extended the following facilities:

(i)

Agriculture

(a)

A new scheme called the Vishesh Krishi Upaj Yojana (Special Agricultural Produce Scheme) for promoting the export of fruits, vegetables, flowers, minor forest produce, and their value added products has been introduced (Para 3.8).

(b)

Funds shall be earmarked under ASIDE for development of Agri Export Zones (AEZ)

(c)

Import of capital goods shall be permitted duty free under the EPCG Scheme

(d)

Units in AEZ shall be exempt from Bank Guarantee under the EPCG Scheme.

(e)

Capital goods imported under EPCG shall be permitted to be installed anywhere in the AEZ.

(f)

Import of restricted items, such as panels, shall be allowed under the various export promotion schemes .

(g)

Import of inputs such as pesticides shall be permitted under the Advance Licence for agro exports.

(h)

New towns of export excellence with a threshold limit of Rs 250 crore shall be notified.

(ii)

Handlooms :

(a)

Specific funds would be earmarked under MAI/ MDA Scheme for promoting handloom exports

(b)

Duty free import entitlement of specified trimmings and embellishments shall be 5% of FOB value of exports during the previous financial year.

(c)

Duty free import entitlement of hand knotted carpet samples shall be 1% of FOB value of exports during the previous financial year.

(d)

Duty free import of old pieces of hand knotted carpets on consignment basis for re-export after repair shall be permitted.

(e)

New towns of export excellence with a threshold limit of Rs 250 crore shall be notified.

(iii)

Handicrafts:

(a)

New Handicraft SEZs shall be established which would procure products from the cottage sector and do the finishing for exports

(b)

Duty free import entitlement of trimmings and embellishments shall be 5% of the FOB value of exports during the previous financial year. The entitlement is broad banded, and shall extend also to merchant exporters tied up with supporting manufacturers.

(c)

The Handicraft Export Promotion Council shall be authorized to import trimmings, embellishments and consumables on behalf of those exporters for whom directly importing may not be viable.

(d)

Specific funds would be earmarked under MAI & MDA Schemes for promoting Handicraft exports.

(e)

CVD is exempted on duty free import of trimmings, embellishments and consumables.

(f)

New towns of export excellence with a reduced threshold limit of Rs 250 crore shall be notified.

(iv)

Gems & Jewellery

(a)

Import of gold of 18 carat and above shall be allowed under the replenishment scheme

(b)

Duty free import entitlement of consumables for metals other than Gold, Platinum shall be 2% of FOB value of exports during the previous financial year.

(c)

Duty free import entitlement of commercial samples shall be Rs 100,000.

(d)

Duty free re-import entitlement for rejected jewellery shall be 2% of the FOB value of exports

(e)

Cutting and polishing of gems and jewellery, shall be treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act

(v)

Leather and Footwear

(a)

Duty free import entitlement of specified items shall be 5% of FOB value of exports during the preceding financial year.

(b)

The duty free entitlement for the import of trimmings, embellishments and footwear components for footwear (leather as well as synthetic), gloves, travel bags and handbags shall be 3% of FOB value of exports of the previous financial year. The entitlement shall also cover packing material, such as printed and non printed shoeboxes, small cartons made of wood, tin or plastic materials for packing footwear .

(c)

Machinery and equipment for Effluent Treatment Plants shall be exempt from basic customs duty.

(d)

Re-export of unsuitable imported materials such as raw hides & skins and wet blue leathers is permitted.

(e)

CVD is exempted on lining and interlining material notified at S.No 168 of Customs Notification No 21/2002 dated 01.03.2002.

(f)

CVD is exempted on raw, tanned and dressed fur skins falling under Chapter 43 of ITC(HS).

Optimum Development programme for Pragati Maidan

1B.2

In order to showcase our industrial and trade prowess to its best advantage and leverage existing facilities to enhance the quantity of space and service, Pragati Maidan will be transformed into a world-class complex with visitor friendliness ingress and egress system. The complex utilisation will be improved, increased and diversified. There shall be brand new , state-of-the-art , environmentally- controlled, air-conditioned exhibition areas, and Permanent Exhibition Marts. In addition, a large Convention Centre to accommodate ten thousand delegates will be developed, with multiple and flexible hall spaces, auditoria and meeting rooms with hi-tech equipment. A year-round Food and Beverage destination will be developed, with a large number of outlets covering all cuisines and pricing levels. There will be a multi- level park to accommodate over nine thousand vehicles within the envelope of Pragati Maidan.