Services exports has got a shot in the arm with a slew of incentives unveiled in the new Exim Policy, particularly to software, entertainment, hotel and health sectors.
The policy announced by Commerce Minister Arun Jaitely on Monday made the EPCG (export promotion capital goods) scheme more flexible to allow duty-free import of important consumables and equipment by the hotel and health industry.
Jaitely said the "bold initiative" has been taken to promote export of services as with the possible exception of software sector, the country has not "even made a beginning".
To boost exports of services other than software, duty-free import of consumables, office and professional equipment, spares and furnitures up to 10 per cent of the average foreign exchange export earning in the previous three years has been allowed for firms earning minimum foreign exchange of Rs 10 lakh (Rs 1 million).
The facility has also been extended to newcomers against bank guarantee to the extent of the revenue sacrificed, which was likely to benefit the health sector and make the country a major destination for health services.
The policy emphasised taking full advantage of the growing opportunities in the software sector, where India has already emerged as a leading player, by utilising its strong points of an abundant skilled manpower.