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  1. Modi government gives big boost to exporters, here are highlights of Foreign Trade Policy review

Modi government gives big boost to exporters, here are highlights of Foreign Trade Policy review

The much-awaited Foreign Trade Policy mid-term review was on Tuesday released to highlight the steps taken by the government to ensure ease of trading for exporters in the country. Here are the highlights of the incentives the government has given to exporters.

By: | New Delhi | Updated: December 6, 2017 6:56 AM
foreign trade policy, foreign trade policy highlights, modi government, narendra modi, export, import, foreign trade policy review, FTP review, export incentives, exporters, india export import, india export policy, The much-awaited Foreign Trade Policy mid-term review was on Tuesday released to highlight the steps taken by the Narendra Modi government to ensure ease of trading for exporters in the country and to highlight the impact of the Goods and Services Tax (GST) (Image: PIB)

The much-awaited Foreign Trade Policy mid-term review was on Tuesday released to highlight the steps taken by the Narendra Modi government to ensure ease of trading for exporters in the country and to highlight the impact of the Goods and Services Tax (GST). Aiming to nearly double India’s exports of goods and services to $900 billion by 2020, the government had announced several incentives in the five-year Foreign Trade Policy for exporters and units in the Special Economic Zones in April 2015. The mid-term review was supposed to be released in July with the implementation of the GST on July 1, but it was postponed to also study the impact of the new indirect tax on exporters.

Here is a summary of the incentives announced for exporters in the Foreign Trade Policy review today:

Overview

  • FTP will continue to have dynamic character
  • Import export code simplified
  • Government could assess the impact of GST and could take remedial action
  • GST to help spur exports growth
  • Rationalisation of export promotion schemes to continue
  • Focussing on new markets for Indian exporters
  • India’s exports to focus on new markets in Africa, Latin America
  • Taking care of MSME, agricultural products, labour intensive sectors focus of FTP review
  • Incentives worth Rs 8,450 crore in this policy review
  • Current export incentives Rs 25,000 crore

Procedures and processes

  • Self certification scheme for duty free imports for export inputs
  • Validity for duty credit scrips raised to 24 months from 18 months
  • Single point contact for trade queries launched on DGFT portal
  • Launched state of the art trade analytics for evidence based policy interventions
  • Will set up a team to assist exporters
  • Cutting down delay in filing of Export General Manifest for duty drawback
  • Single window system to facilitate export of perishable agriculture produce
  • Number of mandatory documents needed for exports, imports reduced to 3 each
  • Consignment of export items not to be withheld for any reason by Govt
  • 24/7 customs clearance facility extended to all bills of entry
  • To support enhanced insurance cover for exporters

Merchandise exports

  • MEIS incentives raised by 2% to 4% (merchandise export from India scheme)
  • Increase in MEIS for all labour intensive sector exports
  • Benefits to Leather, Handicrafts, Carpets, Sports goods, Agriculture, Marine, Electronic Components, Project Exports
  • MEIS incentives for two sub-sectors of textiles, ie, ready-made garments and made ups already been increased from 2% to 4%, involving an additional annual incentive of Rs 2,743 crore
  • Additional annual incentive of Rs 749 crore for leather sector; Rs 921 crore for handmade carpets of silk, handloom, coir, jute products; Rs 1354 crore for agricultural products; Rs 759 crore for marine products; Rs 369 crore for telecom, electronic components; Rs 193 crore for medical equipment

Services exports

  • SEIS incentives increased by 2% (Services Exports from India Scheme)
  • Labour incentives for small businesses raised by 2%
  • SEIS incentives for all notified sectors such as educational, hospital, hotels & restaurants, biz, legal, accounting, architectural, etc increased by 2%
  • Additional annual incentives of Rs 1140 crore, which will provide impetus to services trade

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