Many sops in new FTP to double exports to USD 900 bn by FY'20

The government today announced a slew of incentives and new institutional mechanisms as part of the new Foreign Trade Policy to nearly double country's goods and services exports to USD 900 billion by 2019-2020.
Unveiling the much-delayed five-year FTP (2015-2020), Commerce Minister Nirmala Sitharaman said that the policy is being aligned with the government's key programmes like Make in India and Digital India to boost manufacturing, job creation and to improve ease of doing business.
The government is also contemplating tariff rationalisation to raise India's share in the global trade from 2 per cent to 3.5 per cent by 2020.

Sitharaman said the FTP, her first trade policy, will incorporate various incentive schemes to introduce Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) to boost outward shipments.
"FTP lays down a roadmap for India's global trade engagement in the coming years. India will become a significant participant in world trade by 2020," she said, adding that the sops include reduction of export obligation under the EPCG scheme and extension of all export benefits to units within the special economic zones (SEZs).
The government aims to increase India's exports of merchandise and services from USD 465.9 billion in 2013-14 to about "USD 900 billion by 2019-20" Commerce Secretary Rajeev Kher said.

On the most-awaited demand of restoring 3 per cent interest subsidy scheme, he that the ministry would soon seek the Cabinet's nod for its implementation.

Budget has allocated Rs 1,625 crore to provide interest subsidy for exports for 2015-16 fiscal.
The policy also proposed setting up of a host of institutions, including Trade Council and National Committee on Trade Facilitation, to improve India's share in global trade and implement of WTO obligations.
Industry chambers welcomed the steps to improve ease of doing business, while exporters body FIEO demanded restoration of the interest subsidy benefits.