Commerce, Revenue secretaries to meet tomorrow on trade policy

In a run up to the new foreign trade policy (FTP), secretaries of the commerce and revenue departments will meet tomorrow to sort out the issues concerning tax incentives to boost exports and manufacturing.
Issues such as further extension of interest subvention scheme and inclusion of more products in the scheme are expected to figure in the meeting of Commerce Secretary Rajeev Kher and Revenue Secretary Shaktikanta Das, sources said.
With a view to encouraging exports by providing loans at affordable rates, the RBI in January had extended the 2 per cent interest subsidy scheme for exporters in segments like handicrafts, carpets, SMEs and engineering goods till March.

Other sectors which benefited from the scheme are handlooms, readymade garments, processed agriculture products, sports goods, toys and 134 engineering good items.
"Most of the issues have already been sorted out between Commerce and Finance Ministry. Few issues which are remaining would be discussed between the secretaries. Both the ministers concerned would also meet before the release of the FTP," said a source.
The new five-year Foreign Trade Policy (20014-19) is expected to be announced soon as it seeks to boost manufacturing and exports.

Faced with subdued export performance, the FTP would focus on wide range of issues including services sector shipments, standards and branding of products.

All exports and imports related activities are governed by the FTP. It mainly aims at enhancing the country's exports and use trade expansion as an effective instrument of economic growth and employment generation. The FTP (2009-14) was till March 31.
India's exports in the last three years have been hovering around USD 300 billion. The exports in 2013-14 fell short of the USD 325 billion target and managed to reach USD 312.35 billion. The country's exports stood at USD 300.4 billion in 2012-13 and USD 307 billion in 2011-12.
The services sector contributes about 55 per cent to the country's gross domestic product. During April-October period, services exports were worth USD 113.28 billion.

India's share in global trade is about 2 per cent.
Growth rate of India's exports slipped to 5-month low of 2.35 per cent in August at USD 26.95 billion, pushing up the trade deficit to USD 10.83 billion.