Appreciating the Government's move for including 158 hi-tech products under Focus Product Scheme (FPS), the apex exporters body has said that incentivizing Hi-Tech products will help export growth.
"This will definitely give a push to export growth at this difficult time," said Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) said in a statement.
The government has decided to include 158 hi-tech products under Focus Product Scheme (FPS). The products included under Focus Product Scheme (FPS) will get 2 percent incentive of the Free-on-Board (FOB) value of exports.
Ahmed stated that India has the capability of producing Hi-Tech Products of international quality but so far have been lagging behind in this field and such support from the Government will help exporters find the markets for those high-tech products.
According to a statement by the Ministry of Commerce and Industry, the Export Promotion Councils and Chambers of Commerce & Industry were asked to submit their suggestions in this regard, and also for increasing India's exports, by July 5.
The report of the committee and suggestions received from Chambers of Commerce & Industry and Export Promotion Councils have been analysed by Department of Commerce (DoC) and thereafter the decision has been made to include high-tech products under FPS.
The items from engineering, electronics, chemical and pharma sector have been covered under this list. Such benefits will be admissible for exports made w.e.f. 15.8.2013. This list is being notified separately by Director General of Foreign Trade (DGFT), it said.
FIEO had been advocating in this regard and in fact had given a list of about 200 products covering Sectors like Engineering, Electronics, Aero Space, Scientific Instruments and Medical Devices, to be covered under Hi-Tech Product Scheme; informed the FIEO Chief.
Ahemed also suggested that R&D Fund for development of Hi-Tech products may also be set up so that India becomes hub for the manufacturing of hi-tech products and more Sectors can be included in the list.