Industry welcomes new foreign trade policy

JAIPUR: Against the backdrop of a global financial crisis, the new foreign trade policy (FTP) on Thursday managed to revive the spirit of the
city-based exporters.

The exporters were optimistic that the FTP would benefit the industry in Jaipur. The city has also been recently adjugded as the Town of Export Excellence', along with Srinagar and Anantnag.

Besides, concessions for technology upgradation, the handicraft industry has the potential to develop as a mega cluster which can attract more incentives. "Prima facie it looks good," said Dileep Baid, president Federation of Rajasthan Handicraft exporters.

With a target of $200 billion exports for next fiscal and an annual export growth of 15%, the 2009-2014 FTP provides an extended tax holiday and duty refund for exporters. Under protectionism, the FTP had allowed duty free import of capital goods.

With a view to double India's percentage share of global trade in five years, and increasing employment opportunities, certain special initiatives have been considered for agriculture, handlooms, handicraft, gemsand jewellery and leather sectors.

To improve the infrastructure of the export sector, Towns of Excellence', and the associated units will be granted additional support and incentives. "The 5% incentive for handicrafts under special focus would promote the industry interests," Baid said.

The policy aims to provide a thrust to the employment-oriented sectors, which have witnessed job losses due to recession, especially in the fields of textiles, leather and handicrafts.

"This would benefit the labour-intensive block printing industry in Jaipur," said Vikram Joshi, an exporter and president Consortium of Textile Exporters (COTEX).

To give a boost to the drought -hit industry, the Textile Corporation of India is setting up cotton depots. The cotton prices shoot up during drought. These depots, will act as buffers for the industry," Vikram said.

"Investment in new technology will lead to less energy consumption, miminise wastage and increase productivity," he added.

The gem and jewellery industry also appreciated the government concessions for exporters, which includes a tax refund scheme for the sector, besides plans to set up diamond bourses.

"The gems and jewellery account for nearly 13% of India's total exports. The policy will further increase the exports," said Vasant Mehta, chairman of the Gem & Jewellery Export Promotion Council (GJEPC).

However, the carpet industry feels there is not much to cheer about as the policy does not underline any new incentives for them.

"The carpet industry, which is threatened by the US recession, needs more stimulus than any other sector," Mahavir Sharma, vice-chairman, Carpet Export Promotion Council, said.