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Page 1: Assignment Amol

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Symbiosis institute of international business

Course: EXECUTIVE MBA 09-12Name: Amol Sambhajirao KanaseRoll no: 02 

PRN: 09020244002E-Mail: [email protected], [email protected] Mobile no: 09960522020

Internal Assignment: Business EnvironmentTopic: India¶s Foreign Trade and Export Import Policies in 2004-09 and 2009-14Professor: Mr. Arjun Madan

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 Introduction

The Govt. of India, Ministry of Commerce and Industry announce Export Import Policyevery five years. The Export Import Policy (Foreign Trade Policy) is updated every year on the

31st of March and the modifications, improvements and new schemes are effective w.e.f. 1st April of every year. At the same time, all-out efforts are made to promote exports. Thus, thereare two aspects of Exim Policy; the import policy which is concerned with regulation andmanagement of imports and the export policy which is concerned with exports not onlypromotion but also regulation. The main objective of the Government's EXIM Policy is topromote exports to the maximum extent. Exports should be promoted in such a manner that theeconomy of the country is not affected by unregulated exportable items specially needed withinthe country. Export control is, therefore, exercised in respect of a limited number of items whosesupply position demands that their exports should be regulated in the larger interests of thecountry. In other words, the main objective of the Exim Policy is:

To accelerate the economy from low level of economic activities to high level of economicactivities by making it a globally oriented vibrant economy and to derive maximumbenefits from expanding global market opportunities.

To stimulate sustained economic growth by providing access to essential raw materials,intermediates, components,' consumables and capital goods required for augmentingproduction.

To enhance the techno local strength and efficiency of Indian agriculture, industry andservices, thereby, improving their competitiveness.

To generate new employment. Opportunities and encourage the attainment of internationally accepted standards of 

quality.

To provide quality consumer products at reasonable prices.

To become a major player in world trade, a comprehensive approach needs to be takenthrough the Foreign Trade Policy of India. Increment of exports is of utmost importance, Indiawill have to facilitate imports which, are required for the growth Indian economy. Rationality andconsistency among trade and other economic policies is important for maximizing thecontribution of such policies to development. Thus, while incorporating the new Foreign TradePolicy of India, the past policies should also be integrated to allow developmental scope of India¶s foreign trade. This is the main mantra of the Foreign Trade Policy of India.

Context of new Foreign Trade Policy

Trade is not an end in itself, but a means to economic growth and national development.The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity.For India to become a major player in world trade, an all encompassing, and comprehensiveview needs to be taken for the overall development of the country's foreign trade.

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 While increase in exports is of vital importance, we have also to facilitate those imports whichare required to stimulate our economy. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development.Thus, while incorporating the existing practice of enunciating an annual Foreign Trade Policy, itis necessary to go much beyond and take an integrated approach to the developmental

requirements of India's foreign trade.

Objectives of the Foreign Trade Policy of India -

Trade propels economic growth and national development. The primary purpose is not themere earning of foreign exchange, but the stimulation of greater economic activity. The ForeignTrade Policy of India is based on two major objectives, they are ±

To double the percentage share of global merchandise trade within the next fiveyears.

To act as an effective instrument of economic growth by giving a thrust toemployment generation.

Strategy of Foreign Trade Policy of India -  Removing government controls and creating an atmosphere of trust and

transparency to promote entrepreneurship, industrialization and trades. Simplification of commercial and legal procedures and bringing down transaction

costs. Simplification of levies and duties on inputs used in export products. Facilitating development of India as a global hub for manufacturing, trading and

services. Generating additional employment opportunities, particularly in semi-urban and

rural areas, and developing a series of µInitiatives¶ for each of these sectors. Facilitating technological and infrastructural upgradation of all the sectors of the

Indian economy, especially through imports and thereby increasing value additionand productivity, while attaining global standards of quality.

Neutralizing inverted duty structures and ensuring that India's domestic sectors arenot disadvantaged in the

Free Trade Agreements / Regional Trade Agreements / Preferential Trade Agreements that India enters into in order to enhance exports.

Upgradation of infrastructural network, both physical and virtual, related to theentire Foreign Trade chain, to global standards.

Revitalizing the Board of Trade by redefining its role, giving it due recognition andinducting foreign trade experts while drafting Trade Policy.

Involving Indian Embassies as an important member of export strategy and linkingall commercial houses at international locations through an electronic platform for real time trade intelligence, inquiry and information dissemination.

Highlights of Foreign Trade Policy (2004-09) 

  Simplifying procedures and bringing down transaction costs;

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    Adopting the fundamental principle that duties and levies should not be exported;  Identifying and nurturing different special focus areas to facilitate development of India as

a global hub for manufacturing, trading and services.Special Focus Initiatives have been prepared for Agriculture, Handicrafts, Handlooms,Gems & Jewellery and Leather & Footwear sectors.

  The threshold limit of designated Towns of Export Excellence is reduced from Rs 1000crore to Rs 250 crore in these thrust sectors.   A new scheme called Vishesh Krishi Upaj Yojana has been introduced to boost exports of 

fruits, vegetables, flowers, minor forest produce and their value added products.  Duty free import of consumables for metals other than gold and platinum allowed up to 2

per cent of FOB value of exports.  Duty free re-import entitlement for rejected jewellery allowed up to 2 per cent of FOB

value of exports.  Duty free import of commercial samples of jewellery increased to Rs 1 lakh.  Import of gold of 18 carat and above shall be allowed under the replenishment scheme.  Duty free import of trimmings and embellishments for Handlooms & Handicrafts sectors

increased to 5 per cent of FOB value of exports.   A new Handicraft Special Economic Zone shall be established.  Duty free entitlements of import trimmings, embellishments and footwear components for 

leather industry increased to 3 per cent of FOB value of exports.   A new scheme to accelerate growth of exports called Target Plus has been introduced.    Another new scheme called Vishesh Krishi Upaj Yojana (Special Agricultural Produce

Scheme) has been introduced to boost exports of fruits, vegetables, flowers, minor forestproduce and their value added products. Export of these products shall qualify for dutyfree credit entitlement equivalent to 5 per cent of FOB value of exports.

  To accelerate growth in export of services so as to create a powerful and unique Servedfrom India brand instantly recognised and respected the world over, the earlier DFECscheme for services has been revamped and re-cast into the Served from India scheme.

    Additional flexibility for fulfillment of export obligation under EPCG scheme in order toreduce difficulties of exporters of goods and services.

  Technological upgradation under EPCG scheme has been facilitated and incentivised.  Transfer of capital goods to group companies and managed hotels now permitted under 

EPCG.  In case of movable capital goods in the service sector, the requirement of installation

certificate from Central Excise has been done away with.  Export obligation for specified projects shall be calculated based on concessional duty

permitted to them. This would improve the viability of such projects.  Import of fuel under DFRC entitlement shall be allowed to be transferred to marketing

agencies authorised by the Ministry of Petroleum and Natural Gas.  The DEPB scheme would be continued until replaced by a new scheme to be drawn up in

consultation with exporters.   A new rationalised scheme of categorisation of status holders as Star Export Houses has

been introduced.  EOUs shall be exempted from Service Tax in proportion to their exported goods and

services.  EOUs shall be permitted to retain 100 per cent of export earnings in EEFC accounts.

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   Income Tax benefits on plant and machinery shall be extended to DTA units, convert to

EOUs.  Import of capital goods shall be on self-certification basis for EOUs.  For EOUs engaged in Textile and Garments manufacture leftover materials and fabrics

upto 2 per cent of CIF value or quantity of import shall be allowed to be disposed of on

payment of duty on transaction value only.  Minimum investment criteria shall not apply to Brass Hardware and Hand-made JewelleryEOUs (this facility already exists for Handicrafts, Agriculture, Floriculture, Aquaculture,

 Animal Husbandry, IT and Services).   A new scheme to establish Free Trade and Warehousing Zone has been introduced to

create trade-related infrastructure to facilitate the import and export of goods and serviceswith freedom to carry out trade transactions in free currency. This is aimed at makingIndia into a global trading-hub.

  Units in the FTWZs would qualify for all other benefits as applicable for SEZ units.  Import of second-hand capital goods shall be permitted without any age restrictions.  Minimum depreciated value for plant and machinery to be re- located into India has been

reduced from Rs 50 crore to Rs 25 crore.    An exclusive Services Export Promotion Council shall be set up in order to mapopportunities for key services in key markets, and develop strategic market accessprogrammes, including brand building, in co-ordination with sectoral players andrecognized nodal bodies of the services industry.

  Government shall promote the establishment of Common Facility Centres for use byhome-based service providers, particularly in areas like Engineering and Architecturaldesign, Multi-media operations, software developers etc, in State and District-level towns,to draw in a vast multitude of home-based professionals into the services export arena.

   All exporters with minimum turnover of Rs 5 crore and good track record shall be exemptfrom furnishing Bank Guarantee in any of the schemes, so as to reduce their transactionalcosts. -- All goods and services exported, including those from DTA units, shall be exemptfrom Service Tax.

  Validity of all licences/entitlements issued under various schemes has been increased toa uniform 24 months.

  Number of returns and forms to be filed have been reduced. This process shall becontinued in consultation with Customs and Excise.

  Enhanced delegation of powers to Zonal and Regional offices of DGFT for speedy andless cumbersome disposal of matters.

  Time bound introduction of Electronic Data Interface (EDI) for export transactions. 75 per cent of all export transactions to be on EDI within six months.

  Financial assistance would be provided to deserving exporters, on the recommendation of Export Promotion Councils, for meeting the costs of legal expenses connected with trade-related matters.

   A new mechanism for grievance redressal has been formulated and put into place by aGovernment Resolution to facilitate speedy redressal of grievances of trade and industry.

  Biotechnology Parks to be set up which would be granted all facilities of 100 per centEOUs.

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 Highlights of Foreign Trade Policy 2009-14

The following are the highlights of the Foreign Trade Policy 2009-14 unveiled by UnionCommerce and Industry Minister Anand Sharma here today:

Higher Support for Market and Product Diversification

Incentive schemes under Chapter 3 have been expanded by way of addition of newproducts and markets.

26 new markets have been added under Focus Market Scheme. These include 16 newmarkets in Latin America and 10 in Asia-Oceania.

The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to3%.

The incentive available under Focus Product Scheme (FPS) has been raised from 1.25%to 2%.

A large number of products from various sectors have been included for benefits under 

FPS. These include, Engineering products (agricultural machinery, parts of trailers,sewing machines, hand tools, garden tools, musical instruments, clocks and watches,railway locomotives etc.), Plastic (value added products), Jute and Sisal products,Technical Textiles, Green Technology products (wind mills, wind turbines, electricoperated vehicles etc.), Project goods, vegetable, textiles and certain Electronic items.

Market Linked Focus Product Scheme (MLFPS) has been greatly expanded by inclusionof products classified under as many as 153 ITC(HS) Codes at 4 digit level. Some major products include; Pharmaceuticals, Synthetic textile fabrics, value added rubber products,value added plastic goods, textile madeups, knitted and crocheted fabrics, glass products,certain iron and steel products and certain articles of aluminium among others. Benefits tothese products will be provided, if exports are made to 13 identified markets (Algeria,

Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine, Vietnam,Cambodia, Australia and New Zealand). MLFPS benefits also extended for export to additional new markets for certain products.

These products include auto components, motor cars, bicycle and its parts, and apparelsamong others.

A common simplified application form has been introduced for taking benefits under FPS,FMS, MLFPS and VKGUY.

Higher allocation for Market Development Assistance (MDA) and Market Access Initiative(MAI) schemes is being provided.

Technological Upgradation

To aid technological upgradation of our export sector, EPCG Scheme at Zero Duty hasbeen introduced. This Scheme will be available for engineering & electronic products,basic chemicals & pharmaceuticals, apparels & textiles, plastics, handicrafts, chemicals &allied products and leather & leather products (subject to exclusions of currentbeneficiaries under Technological Upgradation Fund Schemes (TUFS), administered byMinistry of Textiles and beneficiaries of Status Holder Incentive Scheme in that particular year). The scheme shall be in operation till 31.3.2011.

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  Jaipur, Srinagar and Anantnag have been recognised as µTowns of Export Excellence¶ for 

handicrafts; Kanpur, Dewas and Ambur have been recognised as µTowns of ExportExcellence¶ for leather products; and Malihabad for horticultural products.

To increase the life of existing plant and machinery, export obligation on import of spares,moulds etc. under EPCG Scheme has been reduced to 50% of the normal specific export

obligation. Taking into account the decline in exports, the facility of Re-fixation of Annual AverageExport Obligation for a particular financial year in which there is decline in exports fromthe country, has been extended for the 5 year Policy period 2009-14.

Support for Green products and products from North East

Focus Product Scheme benefit extended for export of µgreen products¶; and for exports of some products originating from the North East.

Status Holders

To accelerate exports and encourage technological upgradation, additional Duty CreditScrips shall be given to Status Holders @ 1% of the FOB value of past exports. The dutycredit scrips can be used for procurement of capital goods with Actual User condition.This facility shall be available for sectors of leather (excluding finished leather), textilesand jute, handicrafts, engineering (excluding Iron & steel & non-ferrous metals in primaryand intermediate form, automobiles & two wheelers,nuclear reactors & parts, and ships,boats and floating structures), plastics and basic chemicals (excluding pharma products)[subject to exclusions of current beneficiaries under Technological Upgradation FundSchemes (TUFS)]. This facility shall be available upto 31.3.2011.

Transferability for the Duty Credit scrips being issued to Status Holders under paragraph

3.8.6 of FTP under VKGUY Scheme has been permitted. This is subject to the conditionthat transfer would be only to Status Holders and Scrips would be utilized for theprocurement of Cold Chain equipment(s) only.

Stability/ continuity of the Foreign Trade Policy

To impart stability to the Policy regime, Duty Entitlement Passbook (DEPB) Scheme isextended beyond 31-12-2009 till 31.12.2010.

Interest subvention of 2% for pre-shipment credit for 7 specified sectors has beenextended till 31.3.2010 in the Budget 2009-10.

Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of Income Tax Act, has been extended for the financial year 2010-11 in the Budget 2009-10.

The adjustment assistance scheme initiated in December, 2008 to provide enhancedECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010.

Marine sector 

Fisheries have been included in the sectors which are exempted from maintenance of average EO under EPCG Scheme, subject to the condition that Fishing Trawlers, boats,

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 ships and other similar items shall not be allowed to be imported under this provision.This would provide a fillip to the marine sector which has been affected by the presentdownturn in exports.

Additional flexibility under Target Plus Scheme (TPS) /Duty Free Certificate of Entitlement(DFCE) Scheme for Status Holders has been given to Marine sector.

Gems & Jewellery Sector 

To neutralize duty incidence on gold Jewellery exports, it has now been decided to allowDuty Drawback on such exports.

In an endeavour to make India a diamond international trading hub, it is planned toestablish "Diamond Bourse(s)".

A new facility to allow import on consignment basis of cut & polished diamonds for thepurpose of grading/certification purposes has been introduced.

To promote export of Gems & Jewellery products, the value limits of personal carriagehave been increased from US$ 2 million to US$ 5 million in case of participation in

overseas exhibitions. The limit in case of personal carriage, as samples, for exportpromotion tours, has also been increased from US$ 0.1 million to US$ 1 million.

Agriculture Sector 

To reduce transaction and handling costs, a single window system to facilitate export of perishable agricultural produce has been introduced. The system will involve creation of multi-functional nodal agencies to be accredited by APEDA.

Leather Sector 

Leather sector shall be allowed re-export of unsold imported raw hides and skins andsemi finished leather from public bonded ware houses, subject to payment of 50% of theapplicable export duty.

Enhancement of FPS rate to 2%, would also significantly benefit the leather sector.

Tea

Minimum value addition under advance authorisation scheme for export of tea has beenreduced from the existing 100% to 50%.

DTA sale limit of instant tea by EOU units has been increased from the existing 30% to50%.

Export of tea has been covered under VKGUY Scheme benefits.

Pharmaceutical Sector 

Export Obligation Period for advance authorizations issued with 6-APA as input has beenincreased from the existing 6 months to 36 months, as is available for other products.

Pharma sector extensively covered under MLFPS for countries in Africa and Latin America; some countries in Oceania and Far East.

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 Handloom Sector 

To simplify claims under FPS, requirement of µHandloom Mark¶ for availing benefits under FPS has been removed.

EO

Us

EOUs have been allowed to sell products manufactured by them in DTA upto a limit of 90% instead of existing 75%, without changing the criteria of µsimilar goods¶, within theoverall entitlement of 50% for DTA sale.

To provide clarity to the customs field formations, DOR shall issue a clarification to enableprocurement of spares beyond 5% by granite sector EOUs.

EOUs will now be allowed to procure finished goods for consolidation along with their manufactured goods, subject to certain safeguards.

During this period of downturn, Board of Approvals (BOA) to consider, extension of blockperiod by one year for calculation of Net Foreign Exchange earning of EOUs.

EOUs will now be allowed CENVAT Credit facility for the component of SAD andEducation Cess on DTA sale.

Thrust to Value Added Manufacturing

To encourage Value Added Manufactured export, a minimum 15% value addition onimported inputs under Advance Authorization Scheme has now been prescribed.

Coverage of Project Exports and a large number of manufactured goods under FPS andMLFPS.

DEPB

DEPB rate shall also include factoring of custom duty component on fuel where fuel isallowed as a consumable in Standard Input-Output Norms.

Flexibility provided to exporters

Payment of customs duty for Export Obligation (EO) shortfall under Advance  Authorisation / DFIA / EPCG Authorisation has been allowed by way of debit of DutyCredit scrips. Earlier the payment was allowed in cash only.

Import of restricted items, as replenishment, shall now be allowed against transferredDFIAs, in line with the erstwhile DFRC scheme.

Time limit of 60 days for re-import of exported gems and jewellery items, for participationin exhibitions has been extended to 90 days in case of USA. Transit loss claims received from private approved insurance companies in India will now

be allowed for the purpose of EO fulfillment under Export Promotion schemes. At present,the facility has been limited to public sector general insurance companies only.

Waiver of Incentives Recovery, On RBI Specific Write off 

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  In cases, where RBI specifically writes off the export proceeds realization, the incentives

under the FTP shall now not be recovered from the exporters subject to certainconditions.

Simplification of Procedures

To facilitate duty free import of samples by exporters, number of samples/pieces hasbeen increased from the existing 15 to 50. Customs clearance of such samples shall bebased on declarations given by the importers with regard to the limit of value and quantityof samples.

To allow exemption for up to two stages from payment of excise duty in lieu of refund, incase of supply to an advance authorisation holder (against invalidation letter) by thedomestic intermediate manufacturer. It would allow exemption for supplies made to amanufacturer, if such manufacturer in turn supplies the products to an ultimate exporter.

 At present, exemption is allowed upto one stage only. Greater flexibility has been permitted to allow conversion of Shipping Bills from one

Export Promotion scheme to other scheme. Customs shall now permit this conversionwithin three months, instead of the present limited period of only one month. To reduce transaction costs, dispatch of imported goods directly from the Port to the site

has been allowed under Advance Authorisation scheme for deemed supplies. At present,the duty free imported goods could be taken only to the manufacturing unit of theauthorisation holder or its supporting manufacturer.

Disposal of manufacturing wastes / scrap will now be allowed after payment of applicableexcise duty, even before fulfillment of export obligation under Advance Authorisation andEPCG Scheme.

Regional Authorities have now been authorised to issue licences for import of sportsweapons by µrenowned shooters¶, on the basis of NOC from the Ministry of Sports &

Youth Affairs. Now there will be no need to approach DGFT(Hqrs.) in such cases. The procedure for issue of Free Sale Certificate has been simplified and the validity of theCertificate has been increased from 1 year to 2 years. This will solve the problems facedby the medical devices industry.

Automobile industry, having their own R&D establishment, would be allowed free importof reference fuels (petrol and diesel), upto a maximum of 5 KL per annum, which are notmanufactured in India.

Acceding to the demand of trade & industry, the application and redemption forms under EPCG scheme have been simplified.

Reduction of Transaction Costs

No fee shall now be charged for grant of incentives under the Schemes in Chapter 3 of FTP. Further, for all other Authorisations/ licence applications, maximum applicable fee isbeing reduced to Rs. 100,000 from the existing Rs 1,50,000 (for manual applications) andRs. 50,000 from the existing Rs.75,000 (for EDI applications).

To further EDI initiatives, Export Promotion Councils/Commodity Boards have beenadvised to issue RCMC through a web based online system. It is expected that issuanceof RCMC would become EDI enabled before the end of 2009.

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  Electronic Message Exchange between Customs and DGFT in respect of incentive

schemes under Chapter 3 will become operational by 31.12.2009. This will obviate theneed for verification of scrips by Customs facilitating faster clearances.

For EDI ports, with effect from December ¶09, double verification of shipping bills bycustoms for any of the DGFT schemes shall be dispensed with.

In cases, where the earlier authorization has been cancelled and a new authorization hasbeen issued in lieu of the earlier authorization, application fee paid already for thecancelled authorisation will now be adjusted against the application fee for the newauthorisation subject to payment of minimum fee of Rs. 200.

An Inter Ministerial Committee will be formed to redress/resolve problems/issues of exporters.

An updated compilation of Standard Input Output Norms (SION) and ITC (HS)Classification of Export and Import Items has been published.

Directorate of Trade Remedy Measures

To enable support to Indian industry and exporters, especially the MSMEs, in availingtheir rights through trade remedy instruments, a Directorate of Trade Remedy Measuresshall be set up.

CURRENT STATUSOF EXPORTS AND IMPORTS

EXPORTS Exports during June, 2010 were valued at US $ 17745 million (Rs. 82632 crore) which

was 30.4 per cent higher in dollar terms (27.1 per cent higher in Rupee terms) than the level of US

$ 13606 million (Rs.64996 crore) during June, 2009. Cumulative value of exports for the period April-June 2010 was US $ 50777 million (Rs 231743 crore) as against US $ 38396 million (Rs.187218 crore) registering a growth of 32.2 per cent in Dollar terms and 23.8 per cent in Rupeeterms over the same period last year. 

IMPORTS Imports during June, 2010 were valued at US $ 28299 million (Rs.131781 crore)

representing a growth of 23.0 per cent in dollar terms (19.9 per cent in Rupee terms) over the levelof imports valued at US $ 23013 million ( Rs. 109937 crore) in June, 2009. Cumulative value of imports for the period April-June, 2010 was US $ 83044 million (Rs. 378992 crore) as against US $

61871 million (Rs. 301439 crore) registering a growth of 34.2 per cent in Dollar terms and 25.7 per cent in Rupee terms over the same period last year. GDP of India

The Indian economy is the 12th largest in USD exchange rate terms. India is the second fastestgrowing economy in the world. India¶s GDP has touched US$1.25 trillion. The crossing of IndianGDP over a trillion dollar mark in 2007 puts India in the elite group of 12 countries with trillion

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 dollar economy. The tremendous growth rate has coincided with better macroeconomic stability.India has made remarkable progress in information technology, high end services andknowledge process services.

However cause for concern would be this rapid growth has not been an inclusive in nature, in

the sense it has not been accompanied by a just and equitable distribution of wealth among allsections of the population.

Though India has the second highest growth rate in the world, its rank in terms of humandevelopment index (which is broadly used has a measure of life expectancy, adult literacy andstandard of living) has gone down to 128 among 177 countries in 2007 compared to 126 in2006.

Indian GDP ±Trend Of Growth Rate

1960-1980 : 3.5%

1980-1990 : 5.4%1990-2000 : 4.4%2000-2009 : 6.4% 

Contribution of Various Sectors in GDP 

The contributions of various sectors in the Indian GDP for 1990-1991 are as follows:  

 Agriculture: - 32%Industry: - 27%Service Sector: - 41%

The contributions of various sectors in the Indian GDP for 2005-2006 are as follows:  

 Agriculture: - 20%Industry: - 26%Service Sector: - 54%

The contributions of various sectors in the Indian GDP for 2007-2008 are as follows:  

 Agriculture: - 17%Industry: - 28%Service Sector: - 54% 

It is great news that today the service sector is contributing more than half of the Indian GDP. Ittakes India one step closer to the developed economies of the world. Earlier it was agriculturewhich mainly contributed to the Indian GDP.

The Indian government is still looking up to improve the GDP of the country and so several steps

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 have been taken to boost the economy. Policies of FDI, SEZs and NRI investment have beenframed to give a push to the economy and hence the GDP.

RECOMMENDATIONS

Steps should be taken to generate more employment in the labour-intensive and Export-Oriented Manufacturing Units.

There is also need to provide adequate export credit at reasonable rate of interest topromote our exports.

The transaction cost will have to be reduced to enable Indian Export Industry to competein the International market.

Consideration should be given to garment exporters for grant of adequate commercialrelief to meet the challenges of quota-free regime.

The policy may announce some procedure for easy refund of service tax, fringe benefittax to exporters.

Activating Indian Embassies as key players in the export strategy.