External Sector Updates- 2 | Economy for UPSC 2024 (Pre & Mains) PDF Download

 Page 1


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 2
Page 2


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 2
DUTY DRAWBACK
The refund of certain duties, internal and revenue taxes and certain fees collected upon the 
importation of goods.
Duty Drawback scheme rebates the incidence of Customs and Central Excise duties 
suffered on inputs used in manufacture of export goods. 
Page 3


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 2
DUTY DRAWBACK
The refund of certain duties, internal and revenue taxes and certain fees collected upon the 
importation of goods.
Duty Drawback scheme rebates the incidence of Customs and Central Excise duties 
suffered on inputs used in manufacture of export goods. 
ORDINANCE FOR AMENDMENT TO THE 
SPECIAL ECONOMIC ZONES ACT, 2005
The present provision of the SEZs Act, 2005 do not permit 'trusts' to 
set up units in SEZs. 
The amendment will enable a trust to be considered for grant of 
permission to set up a unit in SEZs.
Page 4


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 2
DUTY DRAWBACK
The refund of certain duties, internal and revenue taxes and certain fees collected upon the 
importation of goods.
Duty Drawback scheme rebates the incidence of Customs and Central Excise duties 
suffered on inputs used in manufacture of export goods. 
ORDINANCE FOR AMENDMENT TO THE 
SPECIAL ECONOMIC ZONES ACT, 2005
The present provision of the SEZs Act, 2005 do not permit 'trusts' to 
set up units in SEZs. 
The amendment will enable a trust to be considered for grant of 
permission to set up a unit in SEZs.
BABA KALYANI LED COMMITTEE
Baba Kalyani led committee 
constituted by the Ministry of Commerce& Industry to study the existing SEZ policy of India
- T o evaluate the SEZ policy and make it WTO compatible
- Suggest measures for maximizing utilisation of vacant land in SEZs
- Suggest changes in the SEZ policy based on international experience 
- Merge the SEZ policy with other Government schemes like coastal economic zones, Delhi-
Mumbai industrial corridor, national industrial manufacturing zones and food and textiles parks.
The Government of India has set a target of creating 100 million jobs and achieving 25% of GDP from 
the manufacturing sector by 2022, as part of its flagship ‘Make in India’ programme. 
Furthermore, the Government plans to increase manufacturing value to USD 1.2 trillion by 2025.
While these are ambitious plans to propel India into a growth trajectory, it requires evaluation of 
existing policy frameworks to catalyse manufacturing sector growth. 
At the same time, policy needs to be compiled with the relevant WTO regulations.
Page 5


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 2
DUTY DRAWBACK
The refund of certain duties, internal and revenue taxes and certain fees collected upon the 
importation of goods.
Duty Drawback scheme rebates the incidence of Customs and Central Excise duties 
suffered on inputs used in manufacture of export goods. 
ORDINANCE FOR AMENDMENT TO THE 
SPECIAL ECONOMIC ZONES ACT, 2005
The present provision of the SEZs Act, 2005 do not permit 'trusts' to 
set up units in SEZs. 
The amendment will enable a trust to be considered for grant of 
permission to set up a unit in SEZs.
BABA KALYANI LED COMMITTEE
Baba Kalyani led committee 
constituted by the Ministry of Commerce& Industry to study the existing SEZ policy of India
- T o evaluate the SEZ policy and make it WTO compatible
- Suggest measures for maximizing utilisation of vacant land in SEZs
- Suggest changes in the SEZ policy based on international experience 
- Merge the SEZ policy with other Government schemes like coastal economic zones, Delhi-
Mumbai industrial corridor, national industrial manufacturing zones and food and textiles parks.
The Government of India has set a target of creating 100 million jobs and achieving 25% of GDP from 
the manufacturing sector by 2022, as part of its flagship ‘Make in India’ programme. 
Furthermore, the Government plans to increase manufacturing value to USD 1.2 trillion by 2025.
While these are ambitious plans to propel India into a growth trajectory, it requires evaluation of 
existing policy frameworks to catalyse manufacturing sector growth. 
At the same time, policy needs to be compiled with the relevant WTO regulations.
INDUSTRIAL PARK RATING SYSTEM
In order to ensure that India moves into the top 50 countries in Ease of Doing Business the 
Ministry has undertaken this exercise in studying infrastructure across states and in 3354 
industrial clusters in order to assess quality of infrastructure in industrial parks.
3000 parks are on the database and the industrial parks have been rated on 4 points: 
1. Internal infrastructure
2. External infrastructure
3. Business services and Facilities 
4. Environment and Safety management.
IPRS is proposed to be translated into an annual exercise covering all the parks across India.