"The annual supplement to the Foreign Trade Policy 2004-09 addresses the major issues impacting industry, that is, inflation and rupee appreciation, and at the same time provides a sustained focus on export-led economic growth and employment generation," said Sunil Mittal, president, Confederation of Indian Industry (CII).

According to the Federation of Indian Chambers of Commerce and Industry (Ficci), measures such as duty reduction under the Export Promotion Capital Goods (EPCG) Scheme, enhanced duty credit for promoting high value-added manufactured products, among others, will be vital for modernising the manufacturing sector and accelerating the exports of manufactured products.

"Extension of the DEPB scheme till May 2009 and income tax benefits for 100 per cent export-oriented units for one more year are welcome steps," Ficci said.

GK Gupta, president, Federation of Indian Export Organisations (FIEO), welcomed the Customs duty reduction from 5 per cent to 3 per cent under the EPCG Scheme, but said exporters were expecting a zero-duty EPCG Scheme.

"Looking at the growth prospects of exports to Africa and our commitment to increase India-Africa trade from $25 billion (at present) to $50 billion by 2011, countries like Algeria, Egypt, Kenya, Nigeria, Tanzania and South Africa should be included in the Focus Market Scheme," Gupta added. FIEO has appealed for early formulation of the scheme for rebating state levies.

According to LK Malhotra, president, PHD Chamber of Commerce and Industry (PHDCCI), the policy should have covered software units working under the STPI scheme that are covered under Section 10A of the I-T Act. "We hope the will would issue a clarification to this effect soon," he added.