Incentive schemes likely for job generating sectors

New Delhi, March 29 | Updated: Mar 30 2006, 05:30am hrs
The annual supplement to the foreign trade policy (FTP) will have incentive schemes for identified employment generating sectors on the lines of the Vishesh Krishi Upaj Yojana (special agricultural produce scheme) for agriculture products. The FTP is scheduled to be announced on April 7.

Speaking to FE, commerce ministry officials said in order to give a push to sectors which generate employment like leather, handicraft and food processing, the policy will entitle exporters of the products to duty credit scrips based on the volume of exports.

We want to start a scheme similar to the Vishesh Krishi Upaj Yojana for employment generating sectors, an official said.

The Vishesh Krishi Upaj Yojna entitles exporters of agriculture products to duty credit scrip equivalent to 5% of the free on board (FOB) value of exports for each licensing year commencing from April 1, 2004.

Products such as fruits, vegetables, flowers, minor forest produce, dairy, poultry and their value added products produced and processed domestically are covered under the scheme.

Officials said that such a scheme was also required to give a push to the employment generating sectors as producing jobs had become one of the prime aims of the FTP.

The study done by the Research and Information System (RIS) for developing countries for the commerce ministry on employment- oriented export strategy revealed that in 2004-05, 12 lakh additional jobs were created solely on the basis of the 26% increase in exports in 2004-05 (from $ 63 billion to $ 80 billion).

The study added that when the country reached the export target of $ 150 billion in 2010, a total of one crore more jobs would have been created.

PUSHING TRADE

The annual supplement to the foreign trade policy will have schemes for identified employment generating sectors on the lines of the Vishesh Krishi Upaj Yojana
The krishi yojana entitles exporters of agriculture products to duty credit scrip equivalent to 5% of the FOB value of exports for each licensing year commencing from April 1, 2004
To give a push to sectors which generate job like leather & food processing, the policy will entitle exporters of the products to duty credit scrips based on the volume of exports