Kamal Nath announces new incentives for auto exportsSeptember 4th, 2008 - 9:40 pm ICT by IANS
New Delhi, Sep 4 (IANS) The Indian automotive industry will be offered incentives for exporting to specific difficult markets, commerce minister Kamal Nath announced here Thursday.The Focus Product and Focus Market Schemes announced April 7, 2006 in the Foreign Trade Policy offers incentives to exporters of specific products, and those who export to so far neglected markets, respectively.
The Focus Product scheme was aimed at giving a thrust to manufacture and export of certain industrial products that could generate large employment per unit of investment compared to other products.
It allows duty-credit facility at 2.5 percent of the FOB (free on board) value of exports on 50 percent of the export turnover of notified products.
So far, the notified products included saddles, handbags, footwear, toys, dolls, fishing rods and stationery items such as pens and pencils.
Now two-, three- and four-wheelers would also be entitled to this facility, the minister said while delivering the keynote address at the 48th annual convention of the auto industry lobby, the Society of Indian Automobile Manufacturers (SIAM).
“For every employment generated by the automobile industry, three jobs get created in the service sectors,” the minister said, adding, “For this reason, the automotive sexctor deserves this incentive.”
The Focus Market Scheme offers similar incentives for exports to specific difficult markets.
“The automtive sector will be brought under the specific difficult market scheme and will be entitled to the same benefits,” the minister said.