Foreign Trade Policy may focus on job creation, improving trade logistics

Centre unveils mid-term review of foreign trade policy to boost exports

Ruchi Soya Industries managing director and CEO Dinesh Shahra said, "The increase of Rs 1,354 crore in the incentives for agriculture and related products will given an additional boost to agri industries, which will in turn benefit all stakeholders including the farmers".

However, to counter the challenges related to exports, the government on Tuesday announced incentives worth Rs 8,450 crore to boost exports of goods and services - mainly from labour-intensive segments and the Micro, Small and Medium Enterprises - and to increase employment generation and value addition. However, it was put off as the government wanted to factor in exporters' feedback regarding the GST.

The review of the FTP (2015-2020) was due earlier this year but got delayed due to the implementation of the GST in July and the problems faced by exporters under the new dispensation taking centerstage.

For the refund of the unutilized Input Tax Credit on inputs or input services used in making exports, file an application in FORM GST RFD- 01A ( a temporary form to process refund requests in the automatic cum manual format) on the Common Portal where the amount claimed as refund shall get debited from the Electronic Credit Ledger of the exporter to the extent of the claim. Along with a push to improving the logistics network, the government is hoping to address oft-repeated concerns over high cost of doing business in the country, which make exports less competitive in the global market. When it was introduced it was known as a game-changing tax reform, the Times of India reported.

"If you leave the transition problems aside, the GST will benefit exporters the most", Adhia said. Chaudhary also stressed on the need to diversify the export basket.

Earlier, in a presentation, the Central Board of Excise and Customs (CEBC) informed that the ministry has processed refund claims of nearly Rs 451 crores out of a pending amount of Rs 551 crores.

With regard to export strategy, the Texprocil chairman said it is reassuring that the revised FTP identifies markets in Africa and Latin America to be its new focus areas as part of the government's goal of exploring new markets. Overall, the FTP review sends a signal about government's commitment to promote exports.

"While these measures are useful, we have to recognise that effective exchange rate management would be critical to achieve a significant increase in exports from India", Ficci Secretary General added.

A sharp fall in export of items such as readymade garments, gems and jewellery and leather products has resulted in a 1.2 percent year on year decline in exports of merchandise in October to $23.09 billion.

Related News: