EXIM Policy

 EXIM Policy

• Special Economic Zones (SEZs):
  • Objective: Strengthen SEZs to enhance international competitiveness.
  • Measures: SEZs allowed to set up offshore banking units, hedge commodity price risks, and procure short-term external commercial borrowings (ECB).
  • Benefits: Domestic suppliers to SEZs could avail benefits under the Duty Entitlement Passbook Scheme.
  • Simplification: Procedural simplification in subcontracting processes within SEZs.
  • Infrastructure: Permission for setting up power generation and distribution units in SEZs to improve local infrastructure.
• Agricultural Exports:
  • Objective: Promote agricultural exports by removing export restrictions.
  • Measures: All quantitative restrictions on exports (except for sensitive items) were removed.
  • Subsidies: Non-actionable subsidies provided for transport to boost exports of fruits, vegetables, floriculture, poultry, and dairy products.
  • Market Access: Focus on enhancing exports in floriculture and horticulture sectors.
• Cottage and Small Scale Industries:
  • Objective: Enhance productivity and competitiveness in the small scale, cottage, and handicraft sectors.
  • Incentives: Exemption from maintaining average export obligations under schemes like Export Promotion of Capital Goods (EPCG).
  • Access to Funds: Preferential access to Market Access Initiative funds.
  • Duty-Free Access: Provision of duty-free access to inputs like trimming and embellishment to promote value-added exports.
  • Regional Development: Focus on developing export excellence towns like Tirupur, Panipat, and Ludhiana for specific products.
• Star Achievers:
  • Objective: Provide incentives to top exporters to boost export performance.
  • Incentives: Strategic package including duty-free import of fuel under the Advance Licensing Scheme.
  • Facilitative Measures: Operationalized procedures to support efficient export processes for recognized export achievers.
• Textiles and Clothing:
  • Objective: Prepare for the quota-free regime in textile imports under the Agreement on Textile and Clothing (ATC).
  • Measures: Focus on encouraging value-added exports in the garment sector.
  • Market Strategy: Gear up for the phase-out of import restrictions on textile products by major importers like the USA by 2005.
• Electronic Hardware Technology Parks (EHTP) Scheme:
  • Objective: Support the hardware sector with a zero-duty regime under the Information Technology Agreement (ITA-1).
  • Export Obligations: Simplified criterion of positive net foreign exchange as a percentage of exports.
  • Imports: Permission for duty-free project imports of equipment used abroad for over a year to facilitate technological advancement.
• Gems and Jewellery:
  • Objective: Enhance competitiveness in the gems and jewellery sector.
  • Policy Changes: Abolition of licensing for the import of rough diamonds to streamline operations.
  • Export Norms: Reduction in value addition norms for jewellery exports and facilitation of personal carriage of jewellery.
• Growth Orientation:
  • Objective: Foster growth-oriented policies to support exporters.
  • Continuity: Retention of existing duty exemption and remission schemes without value ceilings.
  • Simplification: Procedural simplifications such as the abolition of DEEC Book and adoption of 8-digit classification for imports to reduce transaction costs.
  • Facilitation: Introduction of 'same day' licensing and simplified brand rate of drawback scheme to expedite export processes.
• Other Salient Features:
  • Market Access Initiative: Expansion to include necessary activities for focused market promotion of exports.
  • Global Outreach: Establishment of "Business Centre" in Indian Missions abroad to support visiting Indian exporters and businessmen.
  • Regional Support: Transport subsidy for exports to units located in North East, Sikkim, and Jammu & Kashmir.
  • Diversification: Introduction of "Focus Africa" program to diversify export markets beyond traditional markets.

These features collectively aimed at creating a conducive environment for exports, enhancing competitiveness across sectors, and diversifying export destinations, thereby contributing to India's overall economic growth and global trade footprint during the specified period.