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Export Promotion Measures:
While a number of existing export promotion schemes such as incentive related to Duty Free Replenishment Certificate (DFRC), Duty Entitlement Passbook (DEPB), Export Promotion Capital Goods (EPCG), Advance License have been modified, refined and rationalized from time to time in the post-liberalization period, significantly the formulation of innovative schemes/projects to realign India's trade strategies and priorities with the global trade dynamics have attracted much more attention recently. A major hindrance to exports has been the high import duties that producers have to pay on imported inputs and capital equipment. This makes it difficult for them to compete in the world market. To solve this problem, EPZs, EOU, Technology Parks and lastly Special Economic Zones (SEZs) have been on the forefront in this regard. Export Processing Zones (EPZs) were established as enclaves separated from the domestic tariff area by fiscal barriers and were intended to provide duty he environment for export production at competitive cost. Many of these EPZs have been converted into Special Economic Zones since 2000. Policy measures announced in the successive Union Budgets have included a comprehensive package for development of SEZs including their entitlement to procure duty free equipment, raw material and components. Export Oriented Units (EOUs) were set up as complementary to EPZs under which a unit could be set up at any location (including EPZs) and enjoy liberal package of incentives at par with EPZs. Again software Technology Parks (STP) for IT and IT-related exports and Electronic Hardware Technology Parks for electronics were launched to give push to, these sectors. Recent addition to these schemes has been Agriculture Economic Zones (AEZs) to promote the export of agro and agro-based products. It is not only the decontrol and deregulation of the agriculture sector to boost farm exports; the government also provides assistance to the state governments in developing necessary infrastructure, availability of credit and other facilities for these products.
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