1. In year 2005-06 India’s merchandise trade grew by 25% from 2004-05 reaching to the new height of $ 101 billion.
2. This Annual Supplement of the Foreign Trade Policy 2004-09 was notified on 7 April 2006 by Commerce & Industry Minister Government of India, Mr. Kamal Nath. The Supplement strives to realign the trade strategy in tune with the changing international trade scenario within the broad contours of the FTP.
3. Target Plus Scheme Scrapped:
Target Plus Scheme which was introduced in 2004 withdrawn w.e.f. 31 March 2006 and replaced by two new schemes focusing on specified products and markets
1. Focus Market Scheme:
This scheme was introduced to promote exports in select international markets with a view to enhance export competitiveness in these markets.
2. Focus Product Scheme:
This scheme was introduced with an objective to promote export of products with high employment potential in rural and semi-urban areas.
4. Duty Free Import Authorisation Scheme Launched: DFIA introduced with features of both Advance Licensing Scheme and Duty Free Replenishment Certificate Scheme (‘DFRC’) and to be operational from 1 May 2006
7. Export Promotion Capital Goods Scheme : Greater flexibility by providing extension in export obligation period upto two years permitted on payment of requisite composition fees or enhancement of export obligation. Further extension of two years permitted on payment of 50 percent of duty proportionate to unfulfilled export obligation
8. Export Oriented Units : Actual user condition introduced for import of inputs, such inputs shall be used for export production Sector specific EOUs to have higher value addition norms as specified in the FTP Procurement and supply of export promotion material like brochure, literature, pamphlets, etc. permitted up to a maximum value limit of 1.5 percent of FOB value of exports of previous.
9. Duty Free Import Authorization Scheme launched on may 1, 2006 by merging AL (Advance Licensing) and DFRC (Duty Free Replenishment Certificate)