provisions of the Foreign Trade Policy and fiscal incentives were made effective through the
provisions of relevant statutes.
The SEZ Act, 2005, supported by SEZ Rules, came into effect in 2006, providing
simplification of procedures and single window clearance on matters relating to central and state
governments. The main objectives of the SEZ Act are: generation of additional economic
activity; promotion of exports of goods and services; promotion of investment from domestic
and foreign sources; creation of employment opportunities; and development of infrastructure
Project exports are being encouraged, especially in the emerging markets with high
infrastructure needs, through special lines of credit offered by the Ministry of External Affairs
and the Buyers’ Credit Scheme of the Department of Commerce through Exim Bank of India and
Export Credit Guarantee Corporation of India (ECGC). This will, inter alia, continue to enable
Indian businesses to develop long term business relationships, facilitate easier acceptance of
India’s exports and build visibility for Indian products. In addition, EXIM Bank will undertake a
study on the concept of ‘revolving credit’ for promoting exports in new markets, especially in
South Asia, Africa, CIS and Latin America. EXIM Bank will also explore developing strong ties
with international lending agencies such as African Development Bank, Inter-American
Development Bank, Caribbean Bank, etc. ECGC will be supported to enhance insurance cover to
exporters particularly MSME’s exploring new or difficult markets. ECGC is a premier export
credit agency and its portfolio has nearly 20,000 distinct exporters, 85 per cent of whom are
MSMEs. ECGC will get a fresh capital infusion of ₹ 2,000 crore in 3 years, with ₹ 1,000 crore
being added to enable it to support a larger number of exporters. ECGC has settled claims of
nearly ₹ 7,000 crore in the last 10 years which has provided support to the exporters, and relief to
the banking system.
Digitisation and PFMS
Successful implementation of the Public Financial Management System (PFMS) had been
rolled out in all PAOS of this office Pay and Accounts Offices of Delhi, Chennai, Kolkata and
Mumbai. For digitisation, EAT module and DBT module of PFMS has been implemented for
end to end online payments. A part of pre-check as well as payment for bills is also done through
electronic mode via PFMS.
Government is committed to transforming India into a manufacturing and exporting hub.
This will require focus on improving product quality. Many Indian products fail quality tests due
to traces of pesticides, pathogens, illegal dyes, etc. An endeavour would be made to upgrade
quality and infrastructure to help firms to move to higher quality standards and also protect
Indian consumers from substandard imports. Setting up more globally accredited testing
laboratories, enhancing the capacity of Indian testing laboratories and Mutual Recognition
Agreements (MRA) with partner countries would be areas of focus. A roadmap has been
developed on measures required to protect consumers, raise the quality of the merchandise
produced and enhance India’s capacity to export to even the most discerning markets.