Make In India Scheme need a booster and norms can be made easier for import of raw material and capital goods in the country’s new foreign trade policy (FTP). It aims to encourage exports. The decrease in global demand is impacting exports. FTP (2020-25) will focus on ‘Make in India’.
Incentives on products like Alphonso Mango, Banarasi Saree, and Muradabadi Metal Craft
The policy will provide more incentives for exports of products with geographic indication tags such as Alphonso Mango, Banarasi Saree and Muradabadi Metal Craft. The Commerce Department has also proposed special emphasis on services and e-commerce in this policy.
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Export promotion schemes like EPCG are being considered to be balanced and easy. This policy provides guidelines and incentives to increase shipments. New chapters may include service and e-commerce exports. In addition, advance authorisation and self-gratification schemes can make easier.
Exporter can import capital goods on zero duty to boost make In India scheme
EPCG is an export promotion scheme where exporter can import capital goods on zero duty. They can use this for upgrading export-related technology and government allow them duty-free import.
The country’s exports declined by 6.57% in September as shipments of petroleum, engineering, chemicals and gems and jewellery declined. The Ministry of Commerce and Industry is in talks with the parties concerned to prepare the new policy. The current policy expires on March 31, 2020.
The ministry is preparing the Directorate General of Foreign Trade (DGFT) policy
The new policy will also give information about schemes that follow the rules of the World Trade Organization (WTO). For export-linked units, the government is considering bringing policy, regulation and administration under one roof. The unit of the ministry is preparing the Directorate General of Foreign Trade (DGFT) policy.
Under the export promotion schemes in the new policy, there may be a change in incentives for goods that the US has challenged in the WTO. SC Ralhan, president of Hand Tools Association, said that the new policy should provide for a refund of state tax such as indirect tax and mandi tax on oil and power tax.
The country’s exports from 2011-12 are about $ 300 billion. It rose 9% to $ 331 billion in 2018-19. The government aims to increase exports to one trillion dollars in the coming years. Government encouraging export in new areas for the investors.
