Thursday, October 24, 2019

Next FTP may reduce raw material costs to boost sliding exports

NEW DELHI: India’s upcoming Foreign Trade Policy is likely to ease the norms for import of raw materials and capital goods for exporters in a bid to provide a boost for exports, hit by sluggish global demand.
The Foreign Trade Policy 2020-25 will also offer higher export rewards to products with geographic indication (GI) tag such as Alphonso mango, Banarasi sarees and Moradabadi metal craft with the Make in India scheme being at its core, officials aware of the details said.
The Commerce Department also proposes to lay special emphasis on services and e-commerce in the upcoming policy that is to come into effect on April 1, 2020.
“In certain cases, there are notional duties that increase the export obligation of the exporters. We are rationalising some schemes to encourage them to do more local sourcing,” said an official.
The Department is considering simplifying various export incentive schemes such as Advance Authorisation Scheme, which facilitates duty free import of inputs for export products, Export Promotion Capital Goods (EPCG) that allows exporters to import certain amount of capital goods at zero duty for upgrading technology related with exports, and Service Exports from India Scheme (SEIS) to incentivise exports of various services ranging from legal and accounting to engineering and medical, officials said.

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