New Delhi: Government today (Aug 31, 2004) announced the Foreign Trade policy saying it wants to double India's share of global trade by 2009.

Announcing the policy, Commerce and Industry Minister Kamal Nath said the Government will constitute a Board of Trade for boosting India's share in the world trade to $ 150 billion annually by 2009.

The board will be headed by an eminent person and not a minister, he said.

The comprehensive foreign trade policy provides for setting up free trade warehousing zones and gives major thrust to service exports, he said.

The policy announces special package for agriculture to boost exports, and exempts all goods and services exported from service tax.

All exporters with a minimum turnover of Rs five crore will be exempt from bank guarantee requirements.

The policy makes procedural simplifications, the Minister said.

The policy exempts EOUs from service tax and provides additional flexibility and improvement in the EPCG (Export Promotion Capital Goods) scheme. The popular export incentive, DEPB (Duty Entitlement Pass Book) scheme, will continue till it is replaced by a suitable alternative.

The policy focuses on employment generation, besides giving a massive push to exports to garner 1.5 per cent of the world share by exporting $150 billion worth of merchandise annually by 2009.

It announces new rationalised scheme for status holders category and introduces special focus initiative in five areas. The policy also announces setting up of bio-technology parks.

Government would give boost to handicrafts and set up a SEZ (Special Economic Zones) for the sector, Kamal Nath said.

He said the export of farm produce from the country is also a thrust area for the Government.

The Minister also announced incentives for the footwear and leather industry.