Union Commerce and Industry Ministry announced a Rs. 900-crore Package for Exporters

Union Commerce and Industry Ministry on 13 October 2011 announced a Rs. 900-crore package for exporters taking the total Diwali bonanza to Rs.1,700 crore with an objective to support exporters exporters against slowdown in the U.S. and Europe.

The package was announced as part of the Foreign Trade Policy (FTP) released by Union Commerce and Industry Minister Anand Sharma. The announcement of the 900 crore package followed notifying the interest subsidy of 2 per cent for labour-intensive industries such as handicrafts, handlooms, carpets and small and medium exporters by the RBI. The benefits will largely accrue to exporters of engineering goods, pharmaceuticals and chemicals.
The policy announced reward for all those scouting for markets in Latin America, Africa and CIS (Commonwealth of Independent States). The new measures will be incorporated in the annual supplement of the Foreign Trade Policy (2009-14).

Around 50 products in engineering, pharmaceuticals and chemicals would get special bonus of additional one per cent of export value between October and March  period of 2011-12 fiscal. Shipments to Latin America, Africa and CIS regions will also be eligible for additional one per cent duty credit besides three per cent already being given. The policies are in sync with the export diversification strategy in the wake of demand sluggishness in the U.S. and European markets.

The apparel sector was given duty credit under Market Linked Focus Product Scheme (MLFPS) for export to the U.S. and Europe. The 2 per cent duty credit would be available to exports made during 2011-12.

The Ministry decided to extend MLFPS benefit for exports of agricultural tractors (over 1800 cc capacity) to Turkey. The list of items under FPS was expanded to include 130 additional items mainly in the chemical, pharmaceutical, textiles, handicrafts, engineering and electronics sectors. The products covered under FPS are entitled for 2 per cent duty credit scrip.

The ministry declared Firozabad for glassware, Bhubaneswar for marine products and Agartala for bamboo and cane products as town of export excellence to boost shipments from these areas.