Indian government unveils new foreign trade policy
MAR 2, 2015: Hailing the new Foreign Trade Policy as a path breaking policy S C Ralhan, President, Federation of Indian Export Organisations (FIEO) said that the new policy recognises the global challenges faced by the export sector and also identify the potential sectors which could emerge as winners in next 5 years. The policy aims to achieve a compound annual growth rate of 11.5% so as to increase the merchandise and services exports from US$ 466 billion in 2013-14 to US$ 900 billion by 2019-20. The new Foreign Trade Policy has put focus on states as all factors of production are within the ambit of States. Developing an export strategy, setting up of institutional support of Export Commissioners and formation of Council for Trade Promotion and Development would involve States in export promotion which was seriously lacking. Ralhan said that Defense, Pharmaceuticals, Hi technology products, project exports, green and environmental friendly goods and E commerce will be India's exports strength in next few years. FIEO Chief said that the new Foreign Trade Policy has recognized the potential of Services exports by treating them at par with merchandise sector for the grant of export benefit under SEIS. Moreover, Inter-Ministerial agenda for Services exports will unleash the potential of the sector. Simplification of schemes with doing away of multiple schemes, acceptance of self declaration by certain status holders, online filing of applications, online inter-ministerial consultation, initiatives are in line with Digital India and Ease of Doing Business. The Foreign Trade Policy has also integrated the Make in India by encouraging exporters to procure capital goods domestically under EPCG Scheme with lesser export obligation and additional benefit under Merchandise Export from India Scheme for higher domestic procurement. Further, extending the export benefits to units in SEZ/EOUs would boost manufacturing too. The new Foreign Trade Policy has paid special emphasis on the export of quality products which will further enhance the credibility of India in the global market and help the country to integrate into Global Value Chain. President, FIEO said that the Interest Subvention Scheme for the export sector should be announced immediately so that a stable framework both of the Foreign Trade Policy and Credit support is available to the exporters to do their costing for fetching new orders.