Government extends current foreign trade policy until September

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The center on Wednesday extended the foreign trade policy that provides export-related incentives until September 30 this year. The existing foreign trade policy 2015-2020 was due to expire on March 31 this year.

Last year, the government extended the policy until March 31, 2021, in light of Covid-19, to help exporters cope with the pandemic and the downturn induced by it.

“The existing FTP 2015-20, which is valid until March 31, 2021, is extended until September 30, 2021,” the General Directorate of Foreign Trade said in a notification.

Under the FTP, the government provides incentives under various import-related export programs such as Duty Free Import Authorization (DFIA) and Export Promotion Capital Goods (EPCG ).

Under the EPCG, exporters can import certain quantities of capital goods at zero duty to upgrade export-related technology, while the DFIA allows them to import certain goods such as sugar at zero duty.

While the six-year policy has been extended for another six months as India witnesses a second wave of the Covid-19 pandemic, a call for a new policy for 2021-2026 is also expected soon as the government continues discussions with stakeholders on the same.

Exports from April to February this fiscal fell 12.23% to $256 billion. Imports during the period also fell by 23.11% to $340.8 billion, leaving a trade deficit of $84.62 billion.

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