India Inc gave a thumbs up to the Foreign Trade Policy and said it could lead to increased investment flow and employment and make Indian exporters globally competitive.
Industry is confident that exports will grow at over 25 percent this year too. It wants consolidation of measures in the trade policy and other government policies to help India emerge as an export hub for manufacturing and services. Export of services, particularly software and ITeS, could grow exponentially, it said.
However, it feared that lack of proper infrastructure, including a strong road, rail and air network, could come in the way.
President of the Federation of Indian Export Organisations OP Garg, praising several initiatives in the policy, said the exporting community could be disappointed that the government did not announce a zero-duty export promotion credit guarantee scheme.
Federation of Indian Chambers of Commerce and Industry said the new initiatives would give a significant boost to India's rural economy, cut transaction costs for exporters and help them diversify into markets that have so far remained relatively under-exploited.
FICCI President Saroj Poddar said, "At this pace we are confident that the aim of doubling our share in world exports will be achieved much sooner than targeted."
FICCI welcomed the announcement related to remission of service tax and fringe benefit tax in various duty neutralisation schemes and urged the government for its early notification and implementation.
The industry chamber hoped that the details to effectively address this issue would be worked out soon and demanded more flexible treatment for exporters' obligation.
The Confederation of Indian Industry said the two new schemes, Focus Product Scheme and the Focus Market Scheme, would provide a thrust to manufacturing and exports of several products and help diversify export markets for India.
CII said the new initiatives would provide special support to sectors like auto components and gems and jewellery.
The Indo-American Chamber of Commerce, welcoming the policy, said exports in the coming years would mostly depend on factors like reduction in transaction cost, labour reforms, revamp of infrastructure like de-congesting of ports and airports and faster movement of export consignments from hinterland.
Export Promotion Council for EOUs and SEZ Units said certain important issues relating to EOUs and SEZ units needed immediate consideration.
These include removal of sunset clause under Section 10B of the Income Tax Act and exemption from service tax for supply of goods from domestic tariff areas to export units.