Foreign trade policy likely to give leg up to self-help group exports

NEW DELHI: Export of products manufactured by self-help groups (SHGs) is likely to receive a major thrust in the annual review of the foreign trade policy for 2007-08. The government is working on an incentive package for SHGs exporting their products and also for exporters shipping products sourced from such groups.

The move is expected to serve the twin causes of supporting women and giving a push to employment generating sectors. The FTP is likely to be announced in the first week of April.

Speaking to ET, ministry sources said that the plan was to reward all exports made by SHGs and the incremental exports of exporters who source their products from SHGs. While the details of the package is yet to be worked out, officials said that apart from offering fiscal incentives to exporters, inducements will also be in the form of reducing procedural hassles.

Since products manufactured by SHGs are labour intensive, the government’s primary objective of encouraging employment generating sectors will also be served by incentivising exports of such products.

In the review of the FTP carried out last year, the government had announced a focus product scheme to encourage export of products which were labour-intensive.

Under the scheme, exporters of leather, handicraft, handloom, value-added fish products, sports goods & toys and fireworks are entitled for a transferable duty credit scrip equivalent to 2.5% of 50% of the total FOB value. The scheme has, however, been restricted to only exports made from EDI ports.