Foreign Trade policy News

The commerce ministry is working on recasting the existing export incentive schemes in line with the global trade norms of the World Trade Organisation (WTO).

The government on Tuesday announced Rs 8,450 crore incentives for exporters in sectors like leather and agriculture, as it looks to boost outward shipments, which have been disrupted by implementation of goods and services tax (GST).

The minister said even in this type of environment, domestic exporters are doing good.

Given the current economic and geopolitical situations globally there are concerns that international trade may be impacted.

The ministry also proposes to come out with the mid-year review of FTP, a few months ahead of the schedule, before the GST rollout.

The Cabinet's approval for refund of Rs 2,700-crore claims to exporters will provide them relief and help boost shipments, FIEO today said.

India on Tuesday expressed concern over slow progress in finalising the agenda for the Nairobi ministerial meeting of WTO members in December to resolve pending issues of Doha round.

The country's exports dipped by 1.2 percent to USD 310.5 billion in 2014-15.

"We are hoping that (with) changes in the services architecture of incentives in the new policy, services should do better. We hope that their share will increase significantly," a top Commerce Ministry official said.

With Indian pharma companies facing problems in exports to countries like Japan and China, the new Foreign Trade Policy seeks to address issues related to non-trade barriers and regulations faced by them abroad.

The new Foreign Trade Policy unveiled today proposed setting up of a host of institutions, including Trade Council and National Committee on Trade Facilitation, to improve India's share in global trade and implement of WTO obligations.

Under the new five-year Foreign Trade Policy (FTP), the government will provide incentives to eCommerce companies exporting products from sectors that create jobs.

Highlights of the Foreign Trade Policy 2015-20.

Unlike the annual reviews of the past, the FTP will be reviewed after two-and-half years to ensure continuity in the trade policy.

The FTP has extended interest subsidy scheme and other incentives for labour intensive sectors such as leather and handicrafts.

The FTP, which is being announced at a time when India's exports are declining, may extend interest subsidy scheme and other incentives for labour intensive sectors such as leather and handicrafts.

"There will be no such meeting this time. All the work is over for the FTP. The ministry has consulted all the stakeholders for the policy," a senior official told PTI.

Exporters have already raised concerns over the delay in announcement of the FTP. Ten months of the current fiscal are already over.

A new foreign trade policy (FTP) is under consultation and finalisation, government said Wednesday.

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