LUDHIANA: The recently announced engineering package by the Union ministry of commerce has brought a ray of hope for city industrialists dealing in focus products, who feel it will provide a major boost to exports.
According to the notification, bicycle, sewing, hand tools, engineering goods and screw and bolts industries will now be covered under focus products.
Earlier, these fell under market-linked focus products wherein only 3% incentive was entitled. But now, 5% incentive will be given to products and these industries can export their goods to other countries.
The notification also states that industrialists would be entitled to incentives from this month.
The focus product scheme provides incentives for export of products with high employment potential in rural and semi-urban areas.
The main objective of the scheme is to offset the high freight cost and other disabilities to certain select international markets with a view to enhancing the country's competitiveness to these countries.
Talking to Times of India, S C Ralhan, regional chairman of the export promotion council said, “I met S Gujral, director general of foreign trade on December 23, and discussed the issue with him. The move is appreciable as under the Exim policy, exports will get a major boost.”
Citing an example, Ralhan said, “Owners of cycle industry can now export the product and will get 5% incentive which was earlier 3% as cycle components used to come under market-linked products.”
Likewise, sewing machine and hand tool industry will be able to make its presence felt in the international market. Badish Jindal, president of the federation association of small-scale industries, Punjab chapter, said, “The sports industry was put under focus products as its share is less in the international market.”
He added: “If the marginal share of a particular industry is around Rs 800 crore, this will increase to Rs 1,400 crore as 5% incentive can help a lot.” D S Chawla, the president of the United Cycle Parts and Manufacturers said, “The notification is a welcome move and will promote exports in a large way.”
Source : TOI