The export-import policy in for 1998-99 (April-March) has given the software sector in India a boost by reducing the threshold limit under the zero duty export promotion capital (EPCG) scheme from $5m to $2.5m. This will help small software exporters with minimum exports of $2.5m to import computer hardware without paying custom duties. Under the new policy, the value of the imports will be set off against export obligations. Other benefits for software and hardware exporters include increase in depreciation rates and special import license SIL entitlements. SIL entitlements have been enhanced from 15% of net foreign exchange earnings to 25%, and depreciation rates have been increased from 70% to 90% over a period of five years for export oriented units. Software export projections for 1998-99 (April- March) is $2.56bn as compared to last year’s $1.66bn. Software and electronics exports projections for 2002 have been put at $13bn as compared to $2.1bn for 1996-97 (April-March).
