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Keeping in mind the small scale sector, which accounts for 50 per cent of India’s exports, the government has started a programme called Special Focus on Cottage Sector and Handicrafts.
This was announced by Union commerce and industry minister Murasoli Maran while presenting the first five-year Export-Import Policy (2002-2007) of the new millennium, which also coincides with the 10th Five Year Plan.
An initial amount of Rs 5 crore has been earmarked for promoting cottage sector exports, which come under the Khadi and Village Industries Commission. Handicrafts units can also access funds from the Market Access Initiative scheme for normally permissible activities including the development of website for a virtual exhibition.
Under the Export Promotion Capital Goods scheme, these units will not be required to maintain the average level of exports. They will, however, be entitled to the benefit of export house status on achieving lower average export performance of Rs 5 crore as against Rs 15 crore for others.
The units in the handicrafts sector will be entitled to duty free imports of specified items as embellishments up to 3 per cent of free-on-board value of their exports.
In addition, since these units have a strong propensity for economic activities with export possibilities, the government is beginning a programme to identify them. Places like Khurja in Uttar Pradesh, famous for its pottery, will be undertaken for in-depth study for their potential to develop an export market.
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