Home / Economy / New Foreign Trade Policy expected to enhance ease of doing exports from India : PHD Chamber

Bengaluru: Industry expects the upcoming foreign trade policy to enhance trade facilitation measures, provide a simpler duty exemption scheme, and reintroduce a services export promotion scheme by the government.Industry body PHD Chamber of Commerce expects the policy to leverage India’s potential in the services sector for greater export revenue as “education services, healthcare, financial and tourism services hold immense potential to increase India’s share in global services exports."Following its interactions with the director general of foreign trade, PHDCCI expects a focused policy chapter on e-commerce. The five-year foreign trade policy is likely to be announced on 30 September.“The upcoming Foreign Trade Policy (FTP) is expected to be the key to defining the strategy for India to capture a significant share in the world economic system amid the changing global supply-chains, trade and investments dynamics, said Pradeep Multani, president, PHDCCI.The industry body has pressed for identification and promotion of potential products from specific districts.It has also suggested a simpler scheme for duty exemption on the lines of IGCR (Import of Goods at Concessional Rate of Duty) under Section 25 of Customs Act, where self-declaration is relied upon with some supervision.“If this is difficult, PHDCCI had suggested and given a detailed presentation for simplification in the current duty exemption scheme itself where details of exports and import items need not be given in the beginning. This will simplify the process and may help the country’s manufacturers immensely in being internationally competitive," added Multani. It also expects the discontinued Service Export Incentive Scheme to be reformed to take care of specific sectors like travel and tourism, as well as to those who provide services in host countries against international competition like construction etc. “Since the scheme is WTO compliant, it would help improve competitiveness of the specific service exporters, said Multani. It also expects the rate of duty drawback to be increased to a minimum rate of 1.5% to offset input taxes on pharmaceuticals products and promote local manufacturing.“The new foreign trade policy is expected to set out strategies to diversify the portfolio of our export products in terms of more countries and also in terms of more products, where India has core competence," said Multani. We believe that the new Foreign Trade Policy (2022-2027) will provide a renewed thrust by addressing the much-needed areas requiring utmost attention to make India’s foreign trade more competitive, added Multani. 

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout