The Union Minister for Commerce and Industry, Mr Anand Sharma, while releasing the annual supplement for 2010-11 to the foreign trade policy (FTP) 2009-14 on August 23, 2010, said that the financial implications of the export incentives (bonus incentives and add-on to focus product schemes), would be about Rs 1,050 crore (US$ 223.68 million).
Meanwhile, India will be continuing with the export ban on wheat and non-basmati rice for now, he added.
He also reassured industry and investors in special economic zones (SEZs) and SEZ units that their benefits will be fully protected and policy stability will be ensured when it comes to SEZs that have already been notified. This would also include those SEZs that will be notified before the direct tax code (DTC) comes into force. The Commerce Secretary, Dr Rahul Khullar, later stated that the Commerce Ministry was working on a "compromise solution" with the Finance Ministry on the issue of tax breaks for SEZ units in the proposed direct taxes code regime.
Further, industry bodies have lauded the annual supplement to the Foreign Trade Policy 2009-14. Confederation of Indian Industry (CII) too has welcomed the reduction in transaction costs. The CII Secretary General, Mr Chandrajit Banerjee, said that the 2 per cent interest subvention being extended to special sectors would greatly benefit many labour oriented sectors. He also added that the extension of the interest subvention scheme was a very welcome move and addition of new sectors such as engineering would be a great help.
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here to get Highlights of the Annual Supplement 2010-11 to the Foreign Trade Policy 2009-14 released on 23.08.2010.