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India Inc. on Tuesday welcomed the increase in various export promotion schemes in the review of Foreign Trade Policy (FTP) which led to an exponential increase in various export promotion schemes.
According to industry body Ficci's Secretary General Sanjaya Baru: "Mid-term review of the FTP 2015-20 contains several positive features. Ficci is happy to see across-the-board rise of 2 per cent in MEIS (Merchandise Exports from India Scheme) incentive for exports by MSMEs (Micro, Small & Medium Enterprises) and labour intensive sectors. This step was much-needed."
"We also welcome the trust-based approach as reflected in the new self-ratification scheme for duty-free import of raw materials. It will greatly help in expediting export of a number of important products such as engineering, pharmaceuticals, chemicals, textiles and high-tech products" Baru observed while commenting on the mid-term review of the FTP.
"While these measures are useful, we have to recognise that effective exchange rate management would be critical to achieve a significant increase in exports from India," Ficci Secretary General added.
Besides incentives, the mid-term review of the FTP (2015-2020) "clearly focusses" on strategies to enhance exports, said Deloitte India's Senior Director R.Muralidharan.
"Besides focussing on incremental exports on traditional markets and products, measures have been announced to encourage exploring new markets and products," Muralidharan said.
"Increasing the validity period of duty credit scrips from 18 months to 24 months besides increase in the export incentives (both for MEIS and SEIS schemes) should benefit the export sector in general."
Suresh Nandlal Rohira, Partner, Grant Thornton India LLP said that the services sector would now get benefitted as allowing SEIS (Service Exports from India Scheme) benefits to STP (Software Technology Parks) and EOU (Export Oriented Unit) units without de-bonding the units "is a real good move".
As per the Ministry of Commerce & Industry, the revised FTP focuses on the goal of exploring new markets and new products as well as on increasing India's share in the traditional markets and products.
"The revised FTP focuses on... leveraging benefits of GST by exporters; close monitoring of export performances and taking immediate corrective measures based on state-of-the-art data analysis; increasing ease of trading across borders; increasing the realisations from Indian agriculture based exports," the ministry said in the foreign trade policy statement 2017.