EXIM Policy has introduced several measures to improve export turnover from the coutnry. An important strategy on export promotion front is diversificaiton of export baske and export masket. This diversification will help to reduce risk of depending on few commodities and few markets. For diversificying the export basket or the type of commodities that are exported Focus Prodcut Scheme was introudced in 2006.
The main objective of this scheme is to incentivize export of certain products, which have high employment intensity and other advantages. FPS aims to promote these products in the international Market. The scheme was launched in 2006. Later several amendments were made to the scheme by adding more products eligible for export incentives under the scheme and giving different rate of duty credit scrip concessions.
As per the FPS policy, exports of notified products to all countries shall be entitled for duty credit scrip equivalent to 2 -5 % of the value of exports for each licensing year. Duty credit scrip is a license to import commodities in a duty free manner for the scrip value (2-5% of exports).
The products that come under FPS are notified from time to time and changes were introduced through EXIM policies. Exports of these notified products to all countries (and including SEZ units) are eligible for Duty Credit Scrip. As per the 2015-20 Foreign Trade Policy, FPS was merged with MEIS.
A Special Focus Product (s) was introduced to give Duty Credit Scrip of higher value (5%) to promote the export of difficult and important products.