Page 244 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 14: Tertiary Sector in the Indian Economy

To give motivation to trading in India, a scheme is launched to establish Free trades and Notes
Warehousing Zones. These zones will have suitable infrastructure to support the import
and export of goods and services. Foreign direct investment would be allowed up to 100%
in the development and establishment of these zones and their infrastructure amenities.
It is important for you to note that the Foreign Trade Policy 2009-2014 offered exclusive
emphasis to agriculture, gems and jewellery, handicraft, handlooms, and footwear. To
encourage this, it liberalised the imports of tubers, seeds, bulbs, and planting material and
also the export of plant portion, derivatives, and its extracts. Export of medicinal plants
and herbal products are likely to get a boost in the process. For the same purpose, it also
permitted imports of restricted items. Export-oriented units involved in production or
processing of agro, horticulture and aquaculture products are permitted to move inputs
and equipment to farms situated in domestic tariff area. To promote handloom and
handicraft, the duty-free import of trimmings and embellishments in such sectors have
been enhanced to 5% of FOB value of exports. It will be also excused from countervailing
duty. Provision was also made for the setup of a new Handicraft Special Zones.

13. Vishesh Krishi Upaj Yojna: The goal of this Yojna is to encourage the exports of flowers,
fruits, vegetables, minor forest produce and their value-added products. Exporters of such
products will attain duty free credit.
14. Town of Export Excellence: The limit to turn into the Town of Export Excellence have been
decreased to ` 250 crore from ` 1000 crore. FTP gave various benefits to become the Town
of Export Excellence. It involves exemption from service tax in proportion to their exported
goods and services and permission to keep 100% earnings in exchange earner’s foreign
currency account.
15. Served from India: To facilitate the exporter of several kinds of services, the government
of India has launched ‘Served from India Scheme’ as a brand. Under this scheme, service
providers of over 100 services like Computer-related services, Professional Services, Hotels,
Restaurants, Educational Services, Research and Development Services, Communication
Services, Construction and associated Engineering Services, Distribution Service, Tourism
and Transport-related Services, Environment-related Services, Health-related Social
Service, Recreational, Cultural and Sporting Services, etc., are titled for Duty Credit Scrip.
Service providers with a total foreign exchange earning of minimum ` 10 lakhs in preceding
or recent financial year shall qualify for the Duty Credit Scrip. For Individual Service
Providers, the criterion is decreased to ` 5 lakhs of foreign exchange earnings.
16. Service Export Promotion Council: In order to offer proper direction, guidance and
encouragement to the Services Sector, this exclusive council was established by the
government of India. Its main goals were to tap the opportunities in key service regions
and develop strategic market access programmes, involving brand building in coordination
with sectoral players and identified nodal bodies of the services industry.
17. Common Facility Centre: The Common Facility Centres shall be encouraged by the
government for use by the home-based service providers, particularly in the regions such
as engineering and architectural design, software developers, multimedia operations,
etc., at the state and district levels, to draw-in a huge multitude of home-based professionals
into the service-export area.
18. Duty Exemption & Remission Scheme: Duty Exemption Schemes facilitate duty-free import
of inputs needed for export production. Duty Exemption Schemes comprise:
(i) Advance Authorisation Scheme, and
(ii) Duty Free Import Authorisation (DFIA) Scheme.

LOVELY PROFESSIONAL UNIVERSITY 239