"The lower duty on most of items and reduction of cascading effect of various duties would lower the cost and make exports competitive".
The five-year FTP was announced on April 1, 2015, and set an ambitious target of India's goods and services exports touching Dollars 900 billion by 2020. The Commerce Minister said that the FTP will leverage the long term advantages of the historic reform of the GST, in terms of reduced compliance and logistics costs.
The government today announced Rs 8,450 crore incentives for exporters in sectors like leather and agriculture, as it looks to boost outward shipments, which have been disrupted by implementation of goods and services tax (GST).
The government has already increased incentives under the Merchandise Exports from India scheme (MEIS) by 2% for ready-made garment exports.
Exporters, essentially from MSMEs and labour-intensive sectors will now be eligible for 2% higher incentives under the Merchandise Export from India Scheme (MEIS), as per the mid-term review of the Foreign Trade Policy (FTP) released by Commerce and Industry Minister Suresh Prabhu on Tuesday in New Delhi.
As per the break-up provided in the FTP, additional annual incentive of Rs 749 crore have been provided for the leather sector, Rs 921 crore for hand-made carpets of silk, handloom, coir, jute products, Rs 1,354 crore for agri products, Rs 759 crore for marine products, Rs 369 crore for telecom, electronic components, Rs 193 crore for medical equipment.
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However, the RO has rejected this claim saying the veracity of the person speaking in the audio clip can not be confirmed. The form 26 which she reportedly left incomplete relate to cases against her and properties owned by her.
In addition, the review of the FTP has brought in relief amounting to Rs. 8450 crore annually for the labour-intensive sectors and micro, small and medium enterprises (MSME).
"Foreign trade policy review, as expected, did not have any big bang announcements but increase in MEIS/ SEIS by 2 per cent, increased financial support to employment generating sectors, simplification and relaxation of import processes & licenses are step in right direction".
"We welcome the trust-based approach as reflected in the new self-ratification scheme for duty-free import of raw materials".
The five-year FTP was announced on April 1, 2015, and set an ambitious target of India's goods and services exports at $900 billion by 2020.
The FTP reportedly aimed at increasing India's share of world exports to 3.5 per cent, from 2 per cent.
Speaking at the event, Minister of State for Commerce C R Chaudhary said that the government has taken measures to sort out the issues related to refunds and blockage of working capital of exporters.