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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