New Delhi: Government today set up an Export Promotion Council for the telecom sector to provide support to exporters in the telecommunications industry.

"The new EPC will provide institutional support to exports from the telecom sector," Commerce and Industry Minister Kamal Nath said while presenting the annual supplement to Foreign Trade Policy (FTP) here.

Exports from the telecom sector are likely to go up from Rs 1,800 crore to Rs 4,000 crore in the current financial year, he said, adding that "this (exports) is likely to exceed Rs 10,000 crore by 2011."

The minister had announced setting up of the EPC on telecom sector in his last year's annual supplement to the FTP.

"A Telecom EPC was long overdue given the rapid expansion of this sector in the last few years and I am happy that this will pave the way for higher telecom exports from India," CII President Sunil Mittal said. He is also the chief of Bharti Airtel, country's top mobile operator.

Over 60 per cent of the world trade is of hi-technology products, which includes telecom.

"India would increase its share in this percentage along with major players like China, Singapore, Malaysia, South Korea," Federation of Indian Exports President Ganesh Gupta told PTI.

For encouraging the export of IT hardware sector, Nath said specific items from this sector would be made eligible under the Hi-Tech Product Export Promotion Scheme.

The Hi-Tech Product Export Promotion Scheme has been introduced to promote export of notified hi-tech products.

 "This is important in view of the recent cost pressures experienced in the economy, which has dented exports," Mittal said.

Funds would be specifically earmarked for this sector under the ongoing Market Access Initiative (MAI) and Market Development Assistance (MDA) Schemes, Nath said.

The minister has also announced that the IT sector would be brought under the Special Focus Initiative this year.

In the Industrial Park Scheme, administered by Department of Industrial Policy and Promotion, the FTP has included IT, ITES and RD in natural sciences and engineering as industrial activities permitted in such parks.

"Hi-tech products of electronics and IT hardware manufacturing industries sector would be considered for inclusion in Hi-Tech Product Export Promotion Scheme," he said.

MAI is developed to evolve a specific strategy for enhancement of export, accessing new market or increasing share in existing markets. While, MDA scheme offers funding for participation in international fairs, study tours abroad, trade delegations and publicity.

Source : PTI