The Foreign Trade Policy for 2009-2014 was announced by the Commerce and Industry Minister Mr. Anand Sharma on August 27, 2009.

 Highlights of the policy include:

• 26 new markets have been added under the Focus Market Scheme (FMS) with a aim to diversify and develop new markets. These include 16 new markets in Latin America and 10 in Asia-Oceania. Presently the scheme covers 83 countries in Africa, Central America, CIS and Eastern Europe .Incentives on products under FMS has been increased to 3 % from 2.5% of value of exports.

• Duty Entitlement Passbook Scheme has been extended till December 31, 2010 while the income tax holiday for Export Oriented Units will continue till March 2011.

• With an aim to boost the gems and jewellery exports and make the country an international diamond trading hub the government has decided to set up diamond bourses. The sector which contributes 13% of India’s total exports has received a host of incentives including input duty refunds (under duty drawback scheme) on gold jewellery exports.

• Export Oriented Units (EoUs) can import capital goods at zero duty which will help them to modernize their manufacturing processes.

• EoUs can sell 90% of the output in domestic market instead of the earlier 75%.But over a period of time 50% of the production has to be exported.

• Banks to extend dollar credits to exporters.

• A single window scheme  for export of perishable agriculture produce announced

• 2% interest subvention on pre shipment credit extended till March 31, 2010.

• Market linked Focus Product Scheme (FPS) introduced for export of identified new products to 13 new markets .Incentives under this scheme raised to 2% from 1.25% set earlier. Products include specified engineering products, value added plastic products, jute and sisal products, technical textiles, Green Technology products, Project goods, vegetable textiles and certain electronic items.

• A Directorate of Trade Remedy Measures to be set up to support industry and exporters, especially from the small and medium enterprises, in availing of their rights through trade remedy instruments.

• Limit on value of goods carried for participation in overseas exhibition has been raised to $5million. On samples increased to $1 million from $ 0.1 million.
 

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