e-commerce, and to facilitate trade through EDI such that turn-around time at ports, airports, Inland Container Depots and Land Custom Stations match world standards. We cannot rest our laurels in terms of trained manpower. We need to establish a chain of sector-specific skill development institutes. Early implementation of a single Goods and Services Tax (GST) would enable simultaneous reimbursement of duties and taxes in line with government’s policy that these should not be exported.

Export Credit Guarantee Corporation of India (ECGC) has completed its fifty years of operations, satisfactorily in the last financial year. Continuing with its mission to provide a variety of services that would strengthen the exporters by way of minimizing the payment risks and their financial position, ECGC has also drawn plans to operationalise the domestic credit insurance cover for the exporters and its factoring services during the year 2008-09. ECGC is also expanding its distribution channels by entering into Corpo- rate Agency Arrangements with commercial Banks, Export Promotion Councils and Exporters’ Association.

The remarkable achievements in trade and commerce of the past four years gives me the confidence to spell out an even more ambitions target - that of achieving a 5% share of world trade in both goods and services by the year 2020. In practical terms this means a four-fold increase in our percentage share in the next 12 years. Considering that world trade is itself increasing, this would translate into an eight-fold increase in absolute terms. Ambitious the target may be, but achieving it is not impossible.

The task is difficult, but the prize is great. If we achieve it, India will once more become the trading superpower it was two centuries ago.

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ANNUAL SUPPLEMENT TO
FOREIGN TRADE POLICY 2004-09.

1 DUTY ENTITLEMENT PASSBOOK SCHEME (DEPB)

To impart continuity and stability to our foreign trade regime, DEPB scheme is being extended till May 2009.

2. REFUND OF SERVICE TAX

The Government has already announced refund of service tax on almost all the services, which are directly relatable to export production and supply. Some services related to export, which do not attract service tax have also been clarified through a Circular. A few remaining issues regarding refund of services tax will also be resolved shortly.

3. INCOME TAX ON EOUs

Income tax benefit to 100% EOUs under Section 10B of I.T. Act, being extended by Govt. for one more year, beyond 31.3.2009.

4. SECTORAL INITIATIVES

a. IT hardware sector as Special focus initiatives - Specific items to be included for benefits under High Tech Product Scheme. There will also be earmarked funds for this sector under the MDA and MAI Schemes.