Foreign trade policy to be announced by month-end

The policy seeks to provide incentives for exporters, address their concerns

The government today announced that the annual supplement to the Foreign Trade Policy 2009-2014, which will seek to offer an incentive package for exporters, will be announced in the third week of this month.

“It is expected that the Annual Supplement to the Foreign Trade Policy would be announced by the 3rd week of April and address both the immediate and medium term concerns of exports and to give a fillip to India’s exports,” said a statement by the Ministry of Commerce and Industry.

In the review, the government is expected to doll out an incentive package worth Rs.1,500 – Rs. 2,000 crores in an effort to revive the ailing export sector that is going to register a sharp decline this fiscal compared to last year. Lower cost of credit, full rebate of duties and taxes and reduction in transaction cost are some of the top items in the government’s agenda this time.

During the meeting of the Board of Trade last month, minister for commerce and industry and textiles Anand Sharma had said that the government is “looking at the (export) numbers and what is very disturbing and challenging is that we have not even reached where we were before (in 2011-12) $306 billion."

He also said that in the present fiscal of 2012-13 trade deficit might reach a record level of $193 billion - $196 billion. Last fiscal trade deficit had reached $185 billion. “This is not a small number and that is where the crisis is. Therefore every institution must ensure faster movement,” Sharma said.