The Indian Commerce Ministry is geared for working on the upcoming schemes to be included in the Foreign Trade Policy (FTP), which is going to be released in 2019–20. The focus of the FTP would be offer a boost to the export sector, a senior government official revealed.
Currently, the ministry has suggested that the commodity boards in India along with the respective ministries must identify measures of support, which are in line with the global trade rules.
The support structures could be in form of incentives, schemes or related to the infrastructure. It is important that these support measures should encompass as many industries as it can, so that maximum industries can reap the benefit of the policy, added the senior official.
Recently, the ministry has released an account of its midterm review of the existing foreign trade policy in force. The official added that the work is already underway so that by the time the new FTP for 2019–20 is to be released, the ministry would have the final blueprints ready with them, after which they will need to consult with the finance ministry.
The overall objective of the 5 year Foreign Trade Policy is to offer step-by-step roadmap for boosting exports, which will in turn push the economic growth of the country, which will lead to an increase in employment generation.
The Foreign Trade Policy lays down detailed steps to help the exporters. Under the current policy, there are two schemes in place, one each for merchandise export and service export from India. Funds for these schemes are allocated by the Finance Ministry.
Incentives worth Rs. 8450 crore were announced last month by the government to push the exports in the goods and service sector, primarily for the labor-intensive industries. In the first 6 months of the current fiscal year, the merchandise exports saw a growth of 12%, totaling to USD 196.5 billion.