The Ministry of Commerce and Industry plans to postpone the new five-year foreign trade policy for another six months to April 1, 2022 instead of October 1, 2021 as planned.
“Since programs like the RoDTEP (Remission of Duties and Taxes on Exported Products) and the PLI (Performance Linked Incentive) have just been implemented, the government may want some time to analyze their impact on exports and determine how these might be supplemented, ”said case monitoring source said.
The ministry has the option of either announcing the policy immediately without substantial additional provisions, or waiting for the new budget to preview what is needed and do what is needed, the source added.
The five-year FTP was originally scheduled for April 1, 2020, but was postponed for one year due to the Covid-19 outbreak until March 31, 2021, and then for another six months until September 30, 2021 .
However, in the context of the pandemic, the Commerce Ministry has continuously responded to the changing needs of exporters through various policy notifications, another official said. “Policy making has certainly not stopped,” he said.
The Center recently notified RoDTEP tariffs for exporters of 8,555 items for reimbursement of input taxes and securities tax. The regime replaced the MEIS regime which was considered non-transparent by the WTO. The PLI program is also implemented in 13 sectors and is expected to boost domestic manufacturing and exports.
Earlier this month, the Ministry of Finance approved the immediate release of outstanding exporters’ dues under various incentive and duty refund programs, worth a total of 56,027 crore,
“There is an opinion in the ministry that at present there is nothing of significance that could be announced. There are flexibility proposals for the SEZs and measures to promote R&D which are on the cards, but these are not linked to the announcement of the FTP and we could easily wait another six months for that ”, he added. declared the responsible.
Towards the end of the fiscal year, it would also be clear whether the strong export growth, which is currently being observed, will continue.
The Ministry of Commerce has set an ambitious export target of $ 400 billion for 2021-22 compared to $ 292 billion reached in 2020-21. Indian exports from April to August 2021 increased 67.33% to reach $ 164.10 billion from the same period the previous year.