The Centre on Tuesday released the mid-term review of the Foreign Trade Policy (FTP), with the focus expected to be on policy measures to boost the exports of goods and services and to increase employment generation and value-addition in the country.
The mid-term review of FTP is aimed at mid-course correction. It was to be announced on July 1, together with the implementation of the GST regime. But the announcement was postponed to take into account feedback from the export sector regarding GST-related issues.
Highlights from the review released by Alok Chaturvedi, Director General of Foreign Trade
- The value of new incentives is Rs. 8,000 crore
- The FTP would focus on micro, small and medium enterprises, labour-intensive segments and agriculture sector.
- Incentives for goods exports is Rs. 4,567 crore, and for services exports is Rs. 1,140 crore.
- This is in addition to the recently announced incentives to ready-made garments.
- Self-certification scheme for duty-free imports
- FTP is a dynamic document and regular changes are made to increase value addition in the country, generate more employment and boost exports
- Today’s announcement includes a 2% increase each in incentive rates of the Merchandise Exports from India Scheme and Services Export from India Scheme.
- Trade accounts for 45% of the country’s GDP. FTP incentives now cover 8,000 of the total 12,000 lines of items.
- Of these incentives, Rs 749 crore for leather and footwear, Rs 1354 crore for agriculture and related items, Rs 759 crore for marine exports, Rs 369 crore for telecom and electronic items, Rs 921 crore for handmade carpets, Rs 193 crore for medial and surgical equipments, Rs 1140 crore for textiles and ready made garments.
- A new trade data analytics division under the Directorate General of Foreign Trade will analyse real time data to help fine tune policy.