Commerce Minister Anand Sharma releases supplement to trade policy: highlights

Commerce Minister Anand Sharma on Tuesday released the annual supplement to India’s Foreign Trade Policy 2009-14.  

India’s trade deficit in April was at $13.48 billion, according to data from the Ministry of Trade and Commerce. That number is a marginal decline from March 2012, when the trade deficit stood at $13.9 billion.

April imports increased 3.8 per cent on an annual basis to $37.94 billion. Oil imports, which account for the single largest chunk of India’s import bill, increased 7 per ent to $13.9 billion from the corresponding period last fiscal, while non-oil imports were $24.03 billion.

Here are the highlights:  

* The earlier trade policy was against a very different backdrop, focus was labou-intensive. 

* Year ahead is full of challenges, current challenges are very disturbing. 

* The current account deficit is a deep concern. 

* Fixed gross  capital formation has dropped. 

* It will take time for US demand to pick up. 

* We want to double India's share in global trade by 2020. 

* It will take time for demand to return to pre-crisis levels. 

* Last year, we identified 41 markets under special markets schemes, added 26 markets.

* We have expanded scope and coverage of special markets scheme. 

* Aim to increase exports to $500 billion by 2014.

* There has been substantial increase in two-way trade.

* In advanced stage of European Union for comprehensive trade agreement. 

* Earlier schemes have served us well, and we will continue in supplement.

* Broad principles in this supplement: Gainful employment, increase domestic manufacturing, encourage imports, green goods, endeavour to reduce transaction costs through reduction of procedures and human interface.

 * Extend 2 per cent interest subvention on handlooms by one year, adding readymade garments, other categories. 

* Zero percent EPCG scheme extended to end of current fiscal. 

* Introducing new post-export EPCG scheme, 2 per cent interest subvention on exports extended. 

* Focus on facilitating exports from north-east states. 

* Setting up common service centres, common service providers in towns of export excellence to extend bank support. New towns of export excellence are Ahmedabad, Kolhapur and Saharanpur. 

 * Export obligation under EPCG reduced for wind turbines, solar cells.