Benefits of Foreign Trade

1570 WordsSep 13, 20107 Pages
Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity. For India to become a major player in world trade, an all encompassing, comprehensive view needs to be taken for the overall development of the country 's foreign trade. While increase in exports is of vital importance, we have also to facilitate those imports which are required to stimulate our economy. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. Thus, while incorporating the existing practice of enunciating an annual Foreign Trade Policy,…show more content…
Import of capital goods shall be permitted duty free under the EPCG Scheme Units in AEZ shall be exempt from Bank Guarantee under the EPCG Scheme. Capital goods imported under EPCG shall be permitted to be installed anywhere in the AEZ. Import of restricted items, such as panels, shall be allowed underNew towns of export excellence with a threshold limit of Rs 250 crore shall be notified the various export promotion schemes. Import of inputs such as pesticides shall be permitted under the Advance Licence for agro exports. HANDLOOMS Specific funds would be earmarked under MAI/ MDA Scheme for promoting handloom exports Duty free import entitlement of specified trimmings and embellishments shall be 5% of FOB value of exports during the previous financial year. Duty free import entitlement of hand knotted carpet samples shall be 1% of FOB value of exports during the previous financial year. Duty free import of old pieces of hand knotted carpets on consignment basis for re-export after repair shall be permitted. New towns of export excellence with a threshold limit of Rs 250 crore shall be notified. HANDICRAFTS New Handicraft SEZs shall be established which would procure products from the cottage sector and do the finishing for exports Duty free import entitlement of trimmings and embellishments shall be 5% of the FOB value of exports during the previous financial year. The
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