Home / Economy / Foreign Trade Policy extended for six months

NEW DELHI : The government decided to extend the existing five-year foreign trade policy 2015-20 by another six months because of global economic uncertainty and currency volatility, additional secretary in the department of commerce, Amit Yadav, said on Monday.

The extension of the current foreign trade policy came as a surprise as the new policy was expected to be released by the end of the month. The move comes at a time exporters were awaiting incentives and benefits to sustain the demand slowdown in key economies. Exports in key sectors, including engineering, declined in August.

“Existing FTP has been extended by six months due to currency volatility and global uncertainty. The geopolitical situation is not suitable for long-term FTP. Requests had come from various quarters seeking an extension of the FTP. Export promotion councils said that this is not the best time,“ Yadav told reporters at a press briefing.

FTP is a set of guidelines and instructions by DGFT in matters related to importing and exporting goods in India. The new FTP was aimed at complementing the overall objective of achieving a $2 trillion target for merchandise exports and services exports each by 2027.

The commerce and industry ministry said in a statement that it received requests from Export Promotion Councils and leading exporters that it should continue with the current FTP (2015-20), which had been extended from time to time. “In recent days, exporters and industry bodies have strongly urged the government that in view of the prevailing, volatile global economic and geopolitical situation, it would be advisable to extend the current policy for some time and undertake more consultations before coming out with the new policy," the ministry added.

The government has always involved all stakeholders in formulating policy and in view of this, it has been decided to extend the FTP 2015-20, valid till 30 September, for a further period of six months, the ministry added.

ravi.dutt@livemint.com

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