FTP to boost services sector: Fieo, EEPC

Written by fe Bureaus | Mumbai | Updated: Aug 28 2009, 05:50am hrs
The Federation of Indian Export Organisations (Fieo) while welcoming the policy said the government has provided impetus to the labour intensive sectors like textiles, handicrafts by giving them additional benefit under various schemes like focus market and focus product.

Fieo president A Sakthivel said The doubling of benefits under the Served From India Scheme will help the services sectors particularly the hotel and tourism. The introduction of zero duty capital goods scheme and grant of status holders incentive scheme to status holders for import of capital goods in sectors will add to expansion and modernisation, added Sakthivel.

The FTP also provides fillip to services sector by doubling duty free entitlement under Served From India Scheme from 5% to 10% of foreign exchange earned. The sector specific initiatives undertaken for gems and jewellery sector, leather, marine, agriculture, pharma and handloom sector and increase in Focus Product Scheme from 1.25% to 2% will impart some competitiveness of these products which are worst hit due to global slowdown.

EEPC India said the steps to promote the exports of labour intensive sector are in the right direction. These are some sectors that have been adversely affected by the economic downturn and require considerable support from the Centre. The new policy has clearly targeted these sectors for support measures and it is hoped that these sectors will be able to take the benefits provided in the policy particularly from the point of view of safeguarding employment.

EEPC India chairman Aman Chadha said One of the major problems that most exporters have complained in the past is the ineffective co-ordination between the finance and commerce ministries often. It was most heartening to note that the commerce minister has ensured that this dichotomy will no longer exist. In particular, the three pillars of the Policy enhanced market access across the world and diversification of export markets along with improvement in infrastructure related to exports and bringing down transaction costs, are appropriate measures under the present circumstances.