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Unit 14: Tertiary Sector in the Indian Economy

6. Market-linked Focus Product Scheme (MLFPS) has been highly expanded by inclusion of Notes
products classified under as many as 153 ITC (HS) Codes at 4 digit level. Few main products
include—Value-added rubber products, Pharmaceuticals, Synthetic textile fabrics, Value-
added plastic goods, textile made-ups, knitted and crocheted fabrics, glass products, definite
iron and steel products and definite articles of aluminium among others. Advantages to
these products will be offered, if exports are made to 13 recognised markets (Algeria,
Egypt, Kenya, Tanzania, Nigeria, South Africa, Brazil, Mexico, Vietnam, Ukraine,
Cambodia, Australia and New Zealand).
7. MLFPS benefits also extended for export to extra new markets for certain products. These
products involve auto-components, bicycle and its parts, motor cars, and apparels among
others.

8. A common simplified application form has been launched for taking advantages under
MLFPS, FPS, FMS, and VKGUY.

EPCG Scheme Relaxations

1. To enhance the life of prevailing plant and machinery, export obligation on import of
spares, moulds, etc., under EPCG Scheme has been decreased to 50% of the normal specific
export obligation.
2. Taking into consideration the decline in exports, the facility of Re-fixation of Annual
Average Export Obligation for a specific financial year in which there is decrease in
exports from the country, has been expanded for the Five year Policy period 2009-14.

Stability/Continuity of the Foreign Trade Policy

1. Income Tax exemption to 100% EOUs and to STPI units under Sections 10B and 10A of
Income Tax Act has been expanded for the financial year 2010-11 in the Budget 2009-10.
2. Fisheries have been involved in the sectors which are exempted from maintenance of
average EO under EPCG Scheme, subject to the circumstance that Fishing Trawlers, boats,
ships and other similar items shall not be permitted to be imported under this provision.
This would offer a fillip to the marine sector which has been influenced by the current
downturn in exports.
3. Extra flexibility under Target plus Scheme (TPS)/Duty-Free Certificate of Entitlement
(DFCE) Scheme for Status Holders has been offered to the Marine sector.

Notes The Hon’ble Union Commerce & Industry Minister Mr Anand Sharma announced
the new Foreign Trade Policy 2009–2014 in New Delhi on 27th August, 2009.
Mr Jyothiraditya Madhavrao Scindia, Minister of State for Commerce; Dr Rahul Khullar,
Commerce Secretary, Ministry of Commerce & Industry and other dignitaries were present
on the occasion.

Gems and Jewellery Sector

1. In an effort to make India a diamond international trading hub, it is arranged to set up a
‘Diamond Bourse(s)’.

2. A new facility to permit import on consignment basis of cut and polished diamonds for
the motive of grading/certification has been launched.

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