Foreign Trade Policy: Leverage GST, explore new markets to spur exports

To allow duty-free imports for export on self-certification, the validity for duty credit scrips raised to 24 months

BS Web team/IAgencies  |  New Delhi 

Exports, Trade

The Union government on Tuesday released the "Mid-Term Review of Foreign Trade Policy" (2015-20) to focus on strategies to spur exports.

According to the Ministry of Commerce & Industry, the revised FTP focuses on the goal of exploring new markets and new products as well as on increasing India's share in the traditional markets and products.

"The revised FTP focuses on... leveraging benefits of GST by exporters; close monitoring of performances and taking immediate corrective measures based on state-of-the-art data analysis; increasing ease of trading across borders; increasing the realisations from Indian agriculture based exports," the ministry said in the statement 2017.

The Merchandise from Scheme (MEIS) incentives have been increased by 2 per cent to 4 per cent in the review on Tuesday. The Services Exports from Scheme incentives (SEIS) have also been increased by 2 per cent.

To allow duty-free imports for on self-certification, the validity for duty credit scrips has been raised to 24 months. "India's markets to focus on new markets in Africa, Latin America. GST to help spur exports growth," the review stated. Union Commerce Minister Suresh Prabhu on Tuesday released mid-term review of 2015-2020. Prabhu said that the green shoots in exports distinctly visible as shipments grew in 13 of past 14 months.

"Mid-term review aims to promote exports by simplification of processes,enhancing support to high employment sectors, leveraging benefits of GST, promoting services exports,monitoring exports performance through state-of-the-art analytics," Prabhu added.

Key takeaways:

Rationalisation of promotion schemes to continue

Labour incentives for small businesses raised by 2%

Validity for duty credit scrips raised by 24 months

GST to help spur exports growth

Goods which are freely importable are now allowed to be re-exported except SCOMET/Prohibited items

Would enable Indian entities to trade third country goods in restricted list for export 

First Published: Tue, December 05 2017. 16:33 IST