With a view to making exports an effective instrument for promoting greater economic activity and employment, a number of schemes which have been in existence for some time now have been strengthened and improved upon while some new ones have been introduced. A brief description of some of these schemes is given below:

Assistance to States for Developing Export Infrastructure and Allied activities (ASIDE) Scheme

The ASIDE Scheme aims at encouraging the active involvement of State Governments for development of export infrastructure through assistance linked to export performance. The scheme provides an outlay for development of export infrastructure which is distributed among the States, inter-alia, on the basis of the States' export performance in the previous year. The Scheme subsumed the three ongoing Central Schemes viz. the Export Promotion Industrial Park (EPIP), Critical Infrastructure Balance Scheme (CIB) and the Export Development Fund (EDF) Scheme for the North East. The specific purposes for which the funds allocated under the Scheme that can be sanctioned and utilized are as follows: -

• Creation of new Export Promotion Industrial Parks/Zones (including Special Economic Zones (SEZs)/Agri-Business Zones) and augmenting facilities in the existing Zones.
• Setting up of electronic and other related infrastructure in export conclaves.
• Equity participation in infrastructure projects, including the setting up of SEZs.
• Meeting the requirements of capital outlay of EPIPs/ SEZs.
• Development of complementary infrastructure such as roads connecting the production centres with ports, setting up of Inland Container Depots and Container Freight Stations.
• Stabilizing power supply through additional transformers and islanding of export production centres, etc.
• Development of minor ports and jetties of a particular specification to serve exports.
• Assistance for setting up Common Effluent Treatment Plants.
• Projects of national and regional importance.
• Activities permitted as per the Export Development Fund in relation to the North East and Sikkim.

The outlay of the scheme has two components - the State Component and the Central Component. Eighty percent of the funds (state component) are earmarked for allocation to the States/Union Territories on the basis of the approved criteria and the remaining 20 per cent (central component), and an amount equivalent to the unutilized portion of the funds allocated to the States in the past year(s), if any, is retained at the central level for meeting the requirements of inter-state projects, capital outlays of EPZs, activities relating to promotion of exports from the North Eastern Region as per the existing guidelines of the Export Development Fund and any other activity considered important by the Central Government from the regional or national perspective. The export performance and growth of exports from the States is assessed on the basis of the shipping bills submitted by the exporters. At the State Level, a State Level Export Promotion Committee (SLEPC) headed by the Chief Secretary of the State scrutinizes and approves specific projects and oversees the implementation of the scheme. At the Central Level, an Empowered Committee under the chairmanship of the Commerce Secretary approves and monitors the projects under the Central Sector. The Committee also periodically reviews the progress of the scheme and takes steps to ensure achievement of the objectives of the scheme.

Cold Room at the Benfish Food Park), Kolkata(funded under ASIDE Scheme)

Funds are disbursed directly to the Nodal Agency nominated by the State Government. To minimise delays in the submission of reports, utilisation certificates, and for posting/updating of project related information, a web-enabled monitoring system has been developed. Thus, monitoring of the utilisation of funds released under ASIDE has been considerably streamlined.

Water Treatment Plant at Kolkata (funded under ASIDE Scheme)

An outlay of Rs. 1725 crore has been made for the ASIDE scheme during the 10th Five-Year Plan (2002-2007). For the year 2006-07, Rs. 550 crore has been allocated for the Scheme. The details of the funds released under the ASIDE for the years 2002-03, 2003-04, 2004-05, 2005-06 and 2006-07 to various States including N.E Region under the State Component and the Central Sector are given below:-

Infrastructure Related Issues

As a part of border initiative to improve infrastructure of our land borders, namely, on India-Nepal, India-Bangladesh and India-Pakistan, a number of steps have been taken:

• Setting up of Land Ports Authority of India (LPAI) as an autonomous agency under Department of Border Management, Ministry of Home Affairs.
• A total of 13 Integrated Check Posts (ICPs) are proposed to be constructed on our borders with Nepal, Bangladesh, Pakistan and Myanmar at a total estimated cost of Rs. 734 crore. During the first phase, four ICPs will

under State Component of ASIDE Scheme (Rs.crore)

(Rs. in Crore)

(Rs. in Crore)

be taken up for upgradation and setting up of necessary infrastructure. These ICPs are Petrapole at India-Bangladesh border, Moreh at India-Myanmar border, Raxaul at India-Nepal border and Wagah at India-Pakistan border.

Upgradation of road and rail stretches constituting back linkages to the ICPs are being taken up on top priority.

Infrastructure Support

The Government facilitates transport/logistic support and resolves problems experienced by the trading community in the carriage of goods by courier, sea, air, rail and road in coordination with the concerned Ministries and Departments. It seeks to encourage greater containerisation, computerisation of cargo clearance and electronic data interchange, warehousing, setting up of air cargo complexes, inland container depots, container freight stations, etc. As a result of these efforts, export and import have been facilitated through various orders of the Government. The airlines/other carriers having annual transshipment volume above 2500 MT to/from any airport, the same would be exempt from Bank Guarantee for carriage of goods on transshipment. Further, the jurisdictional Commissioners of Customs in deserving cases may also consider giving waiver of bank guarantee. There has been a constant endeavor to solve the problem of congestion in handling and clearance of containers at the Jawaharlal Nehru Port and the Inland Container Depot, Tughlakabad. An Action Group on Trade Facilitation has been formed to recommend simplification of customs procedures leading to reduction of dwell time in cargo clearance.

Single window clearance for proposals for setting up of Inland Container Depots/Container Freight Stations/Air Cargo Complexes (ICDs/CFSs/ACCs) is implemented through an Inter-Ministerial Committee (IMC) since 1992. So far, 28 proposals for setting up Inland Container Depots/Container Freight Stations (ICDs/ CFSs) and Air Cargo Complexes (ACCs) have been approved by the IMC.

Two high level committees viz. the Standing Committee on Promotion of Exports by Sea (SCOPE-SHIPPING) and the Standing Committee on Promotion of Exports by Air (SCOPE-AIR) have been set up to address the constraints in smooth movement of international cargo and resolve problems of exporters concerning Customs, Containerisation, Air, Shipping, and Railways related issues. The meetings of these two committees were held in Chennai in January, 2006.

Electronic Data Interchange (EDI) is also being implemented in a phased manner at Ports and Airports so as to facilitate electronic clearance of export and import containers.

Entry point to Air Cargo Complex at Hyderabad

Market Access Initiative (MAI) Scheme

The Market Access Initiative (MAI) Scheme is a plan scheme to act as a catalyst to promote India's exports on a sustained basis. The Scheme is based upon 'focus product' and 'focus market' concept. Under the Scheme, assistance is extended to the Departments of Central Government and organisations of Central/State Governments, Export Promotion Councils, Registered Trade Promotion organisations, Commodity Boards, Recognized Apex Trade Bodies, Recognized Industrial Clusters and individual Exporters (only for product registration and testing charges for engineering products abroad). Assistance is given for the following components:

Market studies

• Marketing projects which may include:

1. Opening of showrooms
2. Warehousing facility
3. Display in international departmental stores
4. Publicity campaign
5. Participation in trade fairs, BSMs etc., abroad
6. Research and product development
7. Reverse visits of the prominent foreign buyers etc. from the project focus counties

• Export potential survey of the States
• Registration charges for product registration abroad for Pharmaceuticals, Biotechnology and Agro-Chemicals.
• Testing charges for Engineering products abroad
• Cottage and Handicrafts units for similar activities and for developing the web site for virtual exhibition.
• Studies on WTO related matters
• Industrial clusters for marketing studies, participation in trade fairs etc. abroad

Box 4.1 : Additional Activities included in the MAI Scheme

• National Level Participation & Organising Trade Festival of India, BSMs abroad.
• Publication of World Class Catalogues
• Publicity Campaign and Brand Promotion
• Research and Product Development
• Assistance for up-gradation of Laboratories, in Universities, Research Institutions, National Level Institutions for fulfilling Sanitary and Phyto Sanitary (SPS) measures related testing
• Capacity building of exporters for export related matters and product up-gradation
• Developing Common facility Centres, Design Centres etc.
• Hiring consultant/designers in the prospective/buyer country
• Anti Dumping, Anti Money Laundering and other investigations/compliances.
• Studies on WTO related matters and JSG/FTA/RTA Studies
• Project Development

Box 4.2 - New Agencies eligible under MAI Scheme

• Indian Missions
• National Level institutions like IITs, IIM, NIDs, NIFT etc
• Research Institutions, universities and recognized laboratories

Any project/study which the Empowered Committee feels would further the objectives of the Scheme.

The Scheme has been revised during the current year by adding of more activities relating to marketing projects, capacity building, support for statutory compliance, studies and project development etc. and more agencies have been made eligible for assistance under the scheme.

Details about outlays during 2002-2007 and actual expenditure are given below:

(Rs. Lakh)

Marketing Development Assistance (MDA)

To facilitate various measures being undertaken to stimulate and diversify the country's export trade, Marketing Development Assistance (MDA) Scheme is under operation in the Department of Commerce. The Scheme supports the under mentioned activities:

• Assist individual exporters for export promotion activities abroad.
• Assist Export Promotion Councils (EPCs) to undertake export promotion activities for their product(s) and commodities
• Assist approved organisations/trade bodies in undertaking limited exclusive non-recurring innovative activities connected with export promotion efforts for their members.
• Assist Focus Area export promotion programmes in specific regions abroad like Focus LAC, Focus Africa, Focus CIS and ASEAN+2 programmes.
• Promote residual essential activities connected with marketing promotion efforts abroad.

Eligible Agencies

• Recognised Export Promotion Councils (EPCs).
• Exporting companies with an f.o.b. value of exports of upto Rs.15.00 crore in the preceding year
• Export Promotion Agencies like ITPO, FIEO, KVIC

Details about outlays during 2002-2007 and actual expenditure are given below:

(Rs. Lakh)

Year	Budget	Actual
2002-03	4500.00	4484.91
2003-04	5200.00	5200.00
2004-05	5500.00	5500.00
2005-06	5500.00	3847.00
2006-07	5225.00(RE)	3113.00
		(up to December 2006)

During the year 2006-07, the Indian Oilseeds and Produce Exporters Association (IOPEA) was approved as an Export Promotion Council for the De-oiled Cake and meals, Oilseeds and Edible Oils other than those dealt by Shellac EPC. Khadi and Village Industries Commission (KVIC) has been accorded a deemed EPC status and will be extended assistance on the pattern of an umbrella EPC like FIEO. KVIC's proposals for participation in International Fairs, organizing BSMs etc. would be approved, as per admissibility under MDA/MAI guidelines. J&K Chamber of Commerce was also assisted for the first time to participate in International Fairs/exhibitions under MAI scheme.

Export Credit Guarantee Corporation of India Limited (ECGC)

The Corporation was established in 1957 as the Export Risk Insurance Corporation Limited. Keeping in view the wider role played by the Corporation, the name was changed to Export Credit Guarantee Corporation of India Limited (ECGC). The ECGC is the premier organisation in the country, which offers credit risk insurance cover to exporters, banks, etc. The primary objective of the Corporation is to promote the country's exports by covering the risk of export on credit. It provides (a) a range of insurance covers to Indian exporters against the risk of non realisation of export proceeds due to commercial or political causes and (b) different types of guarantees to banks and other financial institutions to enable them to extend credit facilities to exporters on liberal basis.

Achievements of ECGC during 2005-06

Transfer guarantees are issued to banks in India which add confirmation to letters of credit and such guarantees protect banks against loss that may be sustained due to default of banks are certain political risks. The total value of shipment declared under the scheme amounted to Rs. 37590.19 crore as compared to

Rs. 35,987.01 crore in 2004-05 recording a growth of 4.45 per cent,

The total premium income during the year amounted to Rs. 577.33 crore as compared to 515.54 crore in 2004-05 registering a growth 11.99 per cent. The amount contributed to growth came from short term guarantee business which amounted for 67.25 per cent of the total premium income followed by short term policy sector including factoring which contribute to 28.28 per cent. Income from medium and long term sector amounts to Rs. 25.79 crore which is 4.47 per cent of the total premium income.

The total gross income of the Corporation amounted to Rs. 705.48 crore compared to

Rs. 591.07 crore for the previous year. The premium income was Rs. 543.05 crore against

Rs. 476.13 crore for the previous year. Other income for the year was Rs. 162.44 crore as against Rs. 114.05 crore for the previous year.
The total expenditure came to Rs. 362.91 crore comprising of Rs. 249.63 crore by way of net claims paid and provisions for liability, Rs. 113.28 crore being administrative expenditure and write offs including depreciation. The year ended with a profit of Rs. 343.57 crore before tax as compared to Rs. 119.51 crore for the previous year.

The Corporation declared and paid a dividend of Rs. 45.35 crore for the year 2005-06 as compared to Rs. 15.23 crore for the previous year.

National Export Insurance Account (NEIA)

A separate Fund with a corpus of Rs. 2,000.00 crore called the National Export Insurance Account (NEIA) was set up with the approval of the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 24.01.2006. The objective of NEIA is to promote project exports from India, which may not take place but for the support of a credit risk insurance cover in the following cases:

• High risk on a single country
• High value of a single transaction
• Large valued projects involving unusual or unconventional credit terms, which are beyond the normal, risk bearing capacity of ECGC.
• The progress achieved during the current year is given below:
• The NEIA Trust was registered with an initial corpus of Rs. 66 crore under Bombay Public Trust Act, 1950 on 8th May, 2006.
• The second installment of Rs. 180 crore was received on 10th October, 2006 taking the total amount of funds to Rs. 246 crore. The Corpus is expected to be enhanced to Rs. 2000 crore by the end of the 11th Plan period.
• Projects fulfilling following criteria will receive NEIA support:

1. The project by itself should be commercially viable.
2. The project should be strategically important for India, with regard to the economic and political relationship of India with the project country.
3. The exporter should be capable of executing the contract, as evident from his previous track record.
4. ECGC is not able to cover the project on its own, due to its underwriting constraints.

• TCIL's Angola Project has been approved in principle provided Government of India backed Line of Credit to Angola does not materialize. The value of the Angola project is US$ 10 million. Other projects are under consideration.

India Brand Equity Foundation (IBEF)

The India Brand Equity Foundation is working as a public-private partnership with the Confederation of Indian Industry. The activities undertaken by the IBEF during the year are given below:

• "India Everywhere" campaign was successfully launched at the Annual Meeting of the World Economic Forum in Davos, Singapore at the "Celebrating India in Singapore Week" and "Hannover Fair".
• The IBEF's partnership with the World Economic Forum was carried forward and extended to initiatives in the markets of China and Japan.
• Organised an Indo-German Business Summit at Hannover. Over the following months, business audiences across markets to Japan, UK, Belgium, China, Brazil and Italy were engaged.
• Show cased a business exhibition at the European Parliament in Brussels on contemporary India.
• Business seminars were organised in collaboration with Ministry of Finance during the 39th Annual Meeting of the Board of Governors of ADB held in May, 2006 in Hyderabad and India Economic Summit held in November, 2006 in New Delhi.

The film titled "Young and Resurgent India" was screened on a gratis basis by BBC World, Doordarshan, Aaj Tak, Zee and CNN IBN channels.

• Indian economic studies on States of India were prepared highlighting the business trends and key opportunities.
• Engaged with academic delegations as well as international journalists from across markets USA, Sweden, Brazil, Brussels, Germany, Italy and South Africa. Prominent among the former were inter-actions with the Kellog School of Management, Dakin University, Stockholm University School of Business, Babcock School of Business.
• Developed a website for the Ministry of Finance to promote investment in infrastructure projects in India. The website was launched on December 21, 2006.

Trade Finance

Trade Finance coordinates the pre-budget proposals received from Apex Industry Associations/Chambers of Commerce, Export Promotion Councils, Commodity Boards, Federation of Exporters' Organizations, individuals companies, etc. The Department through the Export-Import Bank of India and in line with the trading opportunities proactively endeavored to enhance the competitiveness of Indian exporters while also striving to ensure that Banks' activities and financing initiatives keep pace with the discerning requirements of industry and trade. Taking into consideration our trading requirements, the Department has taken up the matter with the Ministry of Finance for opening new branches or upgrading the status of the existing branches of Indian Banks abroad and of

Foreign Banks in India. At the initiative of the Department, the RBI has taken the decision to continue the existing Rupee Export Credit Interest Rates up to 30 April, 2007 with a view to assist the exporters.

With a view to help the exporters, representations/complaints involving export credit/exchange control matters were also taken up with the Ministry of Finance and the Reserve Bank of India. A Working Group consisting of the RBI, select banks and export organizations was set up in April, 2005 on export credit. The function of this group is to review (i) action taken on exporters' satisfaction survey, (ii) existing procedures for export credit, (iii) Gold Card Scheme, (iv) export credit for non-star exporters, and (v) the current interest rate regulations in export credit. The Working Group had recommended several measures to improve customer service. In the light of the recommendations, RBI has issued instructions to banks, the important ones are given below:

Review of the existing procedure for export credit

1. There is a need for attitudinal change in the approach of banks' officials in small and medium exporters. Banks may take suitable steps in this regard.
2. Banks should put in place a control and reporting mechanism to ensure that the applications for export credit especially from Small and Medium Exporters are disposed of within the prescribed time frame.
3. Small and Medium Exporters especially in the upcountry centers should be properly trained by SSI/export organizations with technical assistance from banks regarding correct filling up of forms.

State Level Export Promotion Committees (SLEPCs) which have been reconstituted as sub-committees of the SLBCs should play a greater role in promoting coordination between banks and exporters.

Review of the Gold Card Scheme

1. Since the number of Gold cards issued by banks is low, banks were advised to speed up the process of issue of the Cards to all the eligible exporters especially the SME exporters.
2. Simplified procedure for issue of Gold Cards as envisaged under the scheme should be implemented by all banks.

Review of export credit for non-star exporters

• Banks should post nodal officers at Regional / Zonal Offices major branches for attending to credit related problems of SME exporters.

Review of other issues

1. The interest rates prescribed by RBI are ceiling rates. Since the banks are at liberty to charge lesser rates of interest, banks may consider extending export credit at rates lesser than the ceiling rates prescribed by RBI.
2. Banks should give priority for the foreign currency export credit requirements of exporters over foreign currency loans to non-exporter borrowers.

Interest on export credit in Foreign Currency

1. As recommended by the Working Group the ceiling rate of interest on export credit in foreign currency by banks was revised to LIBOR plus 100 basis points w.e.f. April 18, 2006 from the existing ceiling rate of LIBOR plus 75 basis points.

eTrade Project

The community project `eTrade' is being pursued in various trade regulatory and facilitating agencies like Customs, DGFT, Ports, Airports, RBI, Export Promotion Organisations (EPO), Exporters, Importers, Agents, CONCOR and Banks. The objectives of this project are to facilitate electronic delivery of services; to simplify procedures; to provide 24 hour access to users with their partners; to make procedure transparent; to reduce the transaction cost and time and to introduce international standards and best practices.

The project has witnessed good progress over the year and one of the major achievements was operationalisation of web based system for electronic interface between Airports Authority of India and importers, exporters, airlines, agents etc. All export transactions are done through this system at the airports of Delhi, Chennai, Mumbai and Kolkata. The import cycle is also being streamlined. Similarly CONCOR has operationalised the web based system for e-filing of documents by its community partners at Tuglakabad. The electronic data interchange (EDI) system for express courier is under development.

The Department organized the 9th United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Forum meeting from 2-6 October, 2006 along with the United Nations Electronic Trade Document (UNeDocs) workshop from 3-4 October, 2006 at New Delhi. This was attended by around 275 participants from twenty eight countries around the world. The focus of the five day event was the development and simplification of electronic data interchange, e-business and administrative processes in most of public and private sectors such as finance, health, business, environment, and so on. 

Important Initiatives taken by EPCs

With a view to boost exports, the government provides various incentives and promotional schemes through its Commodity Boards/Councils for infrastructure development, quality and quality control, market development and promotion, packaging, publicity, information dissemination etc. Some of the initiatives undertaken are given as under:

Shellac & Minor Forest Produce

With a view to strengthen the backward linkages for exports, the Shellac EPC is undertaking projects on expansion of cultivation of several Minor Forest Produce (MFP) including Lac, Guar, Cheronjee, in existing areas and extension of their cultivation to new areas as well. To generate employment and income from these activities at grass root level, the Council aims at forming 5,300 SHGs in 8 MFP producing States, in association with respective State governments, and with fund support from various centrally sponsored schemes like Swarnajayanti Gram Swarojgar Yojana (SGSY). The Department of Rural Development has given in-principle approval to the following 4 special projects:

• Proposal for Guar Swarojgar Programe in Haryana, Rajasthan, and Gujarat. The project aims at increasing 50 per cent guar seed production and guar gum export in 5 years, providing income of Rs. 15,000 per Beneficiary per year.
• Proposal for Lac Swarojgar Programe in West Bengal, Orissa, Andhra Pradesh and Chattisgarh. The project aims at increasing lac production and Shellac exports by 2011, providing income of Rs. 15,000 per Beneficiary per year.
• Proposal for Lac Swarojgar Programme in Patalkot and Chhindwara areas of Madhya Pradesh. The project aims at increasing the lac production by 4.75 lakh kgs in India by 2011, providing income of Rs. 14,500 per Beneficiary per year.
• Proposal for Cheronjee Swarojgar Programe in Amarwara region of Chhindwara district of Madhya Pradesh. The project aims at increasing Cheronjee production by 1000 MT in India by 2011, providing income of Rs. 11,000 per Beneficiary per year.

As part of its mission of enhancing Industry competency and spinoff benefits of employment generation amongst weaker sections of society attached with MFP, SHEFEXIL has also undertaken the second step by initiating a pilot project successfully in Lac cultivation in Purulia, which is the Lac growing district in West Bengal. It is targeted to benefit 600 SHGs in Purulia, in association with Department of Panchayats and Rural development, Government of West Bengal. Out of this, the Council has already helped set up 300 SHGs in the area, most of which are run by women. It has already set up a Broodlac Farm, in that area.

Engineering Exports

The Engineering Export Promotion Council (EEPC) had released funds for various export promotion activities such as holding buyer-seller meets, organizing and participating in exhibitions abroad, conducting market surveys and for providing services to exporters of engineering products through its offices abroad, etc. under the General and Focus Area Programme. During 2006-07, the EEPC organized the following important events:

• Hannover Fair, Hannover, Germany April 24-28
• India Pavillion at INTERPHEX, Singapore June 27-29
• Automechanika Frankfurt September
• 2-17
• India Pavillion at SAITEX, Johannesburg October 10-13
• INDEE Cairo November 23-26

The India Pavillion at the Hannover Fair 2006 was jointly inaugurated by Dr. Manmohan Singh, Hon'ble Prime Minister of India and Dr. Angela Merkel, Hon'ble Chancellor of Federal Republic of Germany on 23rd April, 2006. 315 Indian entrepreneurs, both from PSUs and Public Sector, showcased the advancement of Indian technology. Besides, there was state level participation from Governments of West Bangal, Orissa, Jharkhand, Gujarat and Karnataka. A series of Business Summits, Conferences and Seminars were organized during the exhibition. A Memorandum of Understanding (MoU) was also signed between EEPC and German Engineering Federation (VDMA) on 27th April to promote business trade between India and Germany.

The Indian Engineering Exhibition (INDEE) was held in Cairo, Egypt from 23rd to 26th November 2006. INDEE-Cairo opened a new vista in trade relations between the two countries and has provided an ideal platform for exporters of engineering products and services to address the highly potential and ever-growing market of Egypt, Middle East and other North African (MENA) region. Major exhibits on display in INDEE included automotive components, hand tools, cutting tools, pharmaceutical machinery, electrical appliances, fasteners, pumps, diesel engines, gears & gear boxes, castings & forgings, stainless steel utensils, railway track fitting etc.

Gems and Jewellery

Gems & Jewellery has been identified as a thrust sector in the Foreign Trade Policy. The Annual Supplement to the Foreign Trade Policy issued on 7th April, 2006 has extended the following facilities to this sector:

(i) Import of gold of 8 carat and above has been allowed under the replenishment scheme subject to the import being accompanied by an Assay Certificate specifying the purity, weight and alloy content.

(ii) Duty Free import entitlement of consumables for metals other than Gold, Platinum to be 2 per cent of FOB value of exports during the previous financial year.

(iii) Duty free import entitlement of commercial samples to be Rs. 300,000.

(iv) Duty free re-import entitlement for rejected jewellery to be 2 per cent of the FOB value of exports.

(v) Cutting and polishing of gems and jewellery, to be treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act.

(vi) Import of precious metal scrap / used jewellery has been allowed for melting, refining and re-export of jewellery. However, such import will not be allowed through hand baggage.

(vii) Gem & Jewellery exporters have been allowed to export jewellery on consignment basis.

Box No.4.2-Kimberley Process Certification Scheme

The Kimberley Process Certification Scheme (KPCS) is an international certification scheme aimed at preventing conflict diamonds from entering the legitimate trade, from funding conflicts and from fueling human rights abuses, in terms of UN resolution No.55/56 (2000). At present KPCS has 71 Member-States (including EU). India is one of the founding members of the KPCS. India has been unanimously selected as Vice-Chair for the year 2007 in the Plenary of KPCS held in Botswana in November 2006. India will automatically assume Chair of the JPCS in January, 2008 for a period of one year.

(viii) Gem & Jewellery exporters have been allowed to export cut and polished precious and semi-precious stones for treatment and re-import.

(ix) Value addition norms for different categories of gems and jewellery products have been reduced.

During the year 2006-07, the Gem and Jewellery Export Promotion Council (GJEPC) participated in various exhibitions in India and abroad given as below:

• International Jewellery Tokyo (IJT) 2006, Tokyo, Japan
• Vicenza Oro 1 at Vicenza, Italy
• Bangkok Gems and Jewellery Fair, Bangkok, Thailand
• Hong Kong International Jewellery Show 2006, Hong Kong
• OROGEMMA 2005, Vicenza, Italy
• Jewellery Arabia 2005, Bahrain
• The Council promoted the image of Indian gem and jewellery products abroad in print media through release of advertisements and organized India International Jewellery Show (IIJS) 2006 in Mumbai
• During 2006, India participated in Inter-Sessional and Plenary Meetings of Kimberley Process Certification Scheme (KPCS) 2006 in Gaborone, Botswana.

Services Exports

In order to give proper direction, guidance and encouragement to the Services Sector, the Government on the recommendations of a Task Force constituted in this regard has announced setting up of an exclusive Export Promotion Council for Services (SEPC). The Government has initially identified the following 11 services sectors being supported through the SEPC:

• Health Care Services,
• Educational Services;
• Entertainment Services;
• Consultancy Services;
• Architectural Services/Interior Decoration;
• Distribution Services;
• Accounting/Auditing and Book Keeping
• Maritime Transport Services;
• Marketing Research & Management Services;
• Printing and Publishing
• Legal Services