NET ZERO IMPORTS
Export Processing Zones / Special Economic Zones
Financing lower required reserve requirement which currently stands at 21 % for major banks. Commercial banks were also barred from charging of fees like fund management fees and financial consulting fees for their services to small firms.
8. A special fund has also been set up for encouraging innovation in technologyintensive SMEs.
1. China has ten different kinds of export processing zones( EPZs): Special Economic Zone, Comprehensive Reform Testing District, Economic and Technology Development Zone, Hightech Industrial Development Zone, Bonded Zone, Export Processing Zone, Bonded Port Areas, Bonded Logistics Zone, Comprehensive Free Trade Zone and Border Economic Cooperation Zone.
China also has financial institutions like Export Import Bank of India and China Export & Credit Insurance Corporation( SINOSURE) which provide impetus to the exports from the manufacturing segment through financing and insurance services.
India works towards providing financial assistance to the MSMEs. It has a range of product and services for the small scale sector and has also set up various other institutional infrastructures for the SME sector.
8. Apart from SIDBI, the National Small Industries Corporation and State Finance Corporations also provide financial assistance to the MSMEs.
9. 9. An SME fund has also been created which provides assistance to SMEs at the rate of 200 basis points below the bank’ s prime lending rate.
10. 10. Apart from these, loans up to Rs. 100 lakh can be provided to micro and small enterprises without collateral / third party guarantees under the Government’ s credit guarantee fund scheme for micro and small enterprises.
1. A number of incentives and facilities are offered to the units in the SEZs like exemption from central sales tax, exemption from services tax, single
13 window clearance for approvals, etc.
2. The National Manufacturing Policy which aims to increase the share of manufacturing to 25 % of GDP by 2022 proposed to launch National Investment and Manufacturing Zones( NIMZs).
3. While the SEZs have been developed with a focus on exports, NIMZs are developed more on the lines of industrial towns having manufacturing and related facilities as well as other residential and social infrastructure.
4. For encouraging exports of electronic hardware items, EHTP have been developed. Export profits under these are 100 % tax exempt and CST is refundable.
5. DTA sales are permissible upto 50 % of FOB value of exports, subject to fulfilment of positive net foreign exchange on payment of concessional duties.
India also has financial institutions like Export-Import Bank of India and Export Credit Guarantee Corporation of India which have a pivotal role in promoting foreign trade of India.
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