There is world beyond US, EU: Trade policy to exporters

New Delhi, Aug 27 (PTI) The government on Thursday sought
to bolster exporters, hit hard by recession in the West, by
extending various tax sops and special incentives on trade
with markets in Asia and Africa, in its Foreign Trade Policy.

The policy, coming in the backdrop of a 30 per cent
contraction in exports in the last 10 months, identified 26
new markets for trade that would be eligible for sops. These
include 16 in Latin America and 10 in Asia and Oceania.
At present, India's USD 168 billion exports are highly
concentrated in Europe (36 per cent) and the US (18 per cent)
and Japan (16 per cent) and these are the worst hit by the
biggest financial crisis since the 1930s.
"We have taken a conscious view to expand and diversify
our export markets, especially in the emerging markets of
Africa, Latin America, Oceania and CIS countries," Commerce
and Industry Minister Anand Sharma said, while releasing the
five-year policy that will be reviewed after two years.

The government would offset disadvantages that exporters
may face in these new markets.

While the government would not "hazard a guess" for
2008-09, it has set a target of USD 200 billion for 2010-11.

The policy also sought to help gems and jewellery sector,
one of the worst hit, by allowing duty drawback on exports.

Handloom and handicrafts would be helped under the Market
Development Scheme, while the government also announced the
continuation of the DEPB scheme till December 2010.

Exporters bodies like FIEO welcomed the policy. MORE PTI
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