It is important to note the highlights of the foreign trade policy that are as below:
Higher Support for Market and Product Diversification
1. Incentive schemes have been extended by adding new products and markets.
2. Twenty Six new markets have been added under Focus Market Scheme. These involve 16 new markets in Latin America and 10 in Asia-Oceania.
3. The incentive accessible under Focus Market Scheme (FMS) has been increased from 2.5% to 3%.
4. The incentive accessible under Focus Product Scheme (FPS) has been raised from 1.25% to 2%.
5. A great number of products from various sectors have been involved for benefits under FPS. These involve—Engineering products (agricultural machinery, sewing machines, hand tools, parts of trailers, garden tools, clocks and watches, musical instruments, railway locomotives, etc.), Plastic (value-added products), Jute and Sisal products, Technical Textiles, Green Technology products (wind turbines, wind mills, electric operated vehicles, etc.), Project goods, Vegetable textiles and definite Electronic items.
6. Market-linked Focus Product Scheme (MLFPS) has been highly expanded by inclusion of products classified under as many as 153 ITC (HS) Codes at 4 digit level. Few main products include—Value-added rubber products, Pharmaceuticals, Synthetic textile fabrics, Value-added plastic goods, textile made-ups, knitted and crocheted fabrics, glass products, definite iron and steel products and definite articles of aluminium among others. Advantages to these products will be offered, if exports are made to 13 recognised markets (Algeria, Egypt, Kenya, Tanzania, Nigeria, South Africa, Brazil, Mexico, Vietnam, Ukraine, Cambodia, Australia and New Zealand).
7. MLFPS benefits also extended for export to extra new markets for certain products. These products involve auto-components, bicycle and its parts, motor cars, and apparels among others.
8. A common simplified application form has been launched for taking advantages under MLFPS, FPS, FMS, and VKGUY.
