Special thrust on cottage & handicraft

the government has embarked on a programme, ‘special focus on cottage sector and handicrafts’, including a host of relaxation for entitlement to benefits under various export promotion schemes. access to the market access initiative scheme and easing of eligibility conditions for availing the export promotion capital goods scheme and benefits of export house status have been provided to under the programme. handicraft units will also be entitled to duty free imports of specified items such as embellishments up to 3 per cent of fob value of their exports. the government has also made a provision of rs 5 crore for promotion of cottage sector exports coming under the kvic. relaxation in eligibility criteria for entitlement to benefits under various schemes include grant of export house status on achieving a lower average export performance of rs 5 crore. in comparison, an average export performance level of rs 10 crore is applicable to other units. also, under the epcg scheme, these units will not be required to maintain average level of exports. in addition, union commerce and industry minister murosali maran announced that the government is also embarking on a programme of identifying places that have a very high propensity for export possibilities. “to begin with, places like khurja (up) famous for its pottery will be undertaken for an in-depth study and potential special characteristics for developing an export market,� mr maran said. the small-scale sector has been contributing to more than half of the total exports of the country. the cottage and handicrafts sector mostly employs artisan and rural people. the package announced for the sector is likely to increase its competitiveness.