The package, announced at the economic editors' conference, ranges from duty-free imports on electronic-hardware inputs for hardware exporters to extending the period for defaulting firms to meet their export obligations.

Duty-free imports of inputs are being allowed from Wednesday for electronic-hardware exporters. These inputs include integrated circuits or components, sub-assemblies, accessories, parts. These exporters will have to account for such inputs at the end of the year to Department of Electronics-nominated officials.

A one-time extension up to September 30 had earlier been allowed to firms which had defaulted on their export obligations and was available to those who had fulfilled at least half of their obligation. This scheme has been extended for six months up to March 31 next on similar terms.

On a suggestion by theBombay Chambers of Commerce, the minister has decided to confer Star and Super-Star trading house status on companies whose annual manufacturing turnover is Rs 300 crore and Rs 1,000 crore. This will be done without taking into account their current export performance, on the basis of a "simple application accompanied by a balance sheet."

The firms will have to sign a memorandum of understanding with the Director General of Foreign Trade (DGFT) stating that they will achieve within three years the respective export targets required for the conferment of status, as the case may be.

The package also allows existing Star and Super-Star Trading Houses to retain their status even if their export performance does not measure up to their status. Due to a difficult export environment this year, trading houses are apprehensive that their status, which entitles them to several benefits, will be cancelled as they will fail to achieve the 20 per cent export growth this year. As an exception, it has been decided tolet them retain their status if they reach their respective threshold criteria, Hegde said.

The Manufacturers Association of Information Technology, which is the industry association for hardware manufacturers, has said that the package will help the industry face competition as duties will come down to zero in the next five years. It has added that the package will also help hardware exporters to become globally competitive.