Business Mantra News
Foreign Trade Policy (FTP) in India is also known as Export Import policy (EXIM) as it includes both exports and import to and from India.
Foreign Trade Policy is announced by the Central Government and it sets guidelines and regulations to regulate the matters related to import and export in the country from time to time. Rules of FEMA are to be taken care while FTP is formed and implemented.
The Government needs to reshuffle its FTP to improve export performance, to support exporter and to enhance foreign trade in India as it is an effective mechanism of economic growth of the country.
The exporters should be provided with incentives to help them to afford the burden of GST and to meet other export obligations.
To improve import, certain custom duty exemption schemes should be implemented which allows the duty free import of certain apparatus like raw material and spare parts for exports manufacture.
There should be relaxed rules and incentives for imports which are export oriented, where imports are transformed to make the same exportable.
There must be relaxations from the complex procedure and formalities for obtaining license for imports.
While many states are introduced their champion product with a high export potentials and on the way to improve their export logistics, the Government should design to finance these logistics and to provide infrastructure to boost exports.
TIES (Trade Infrastructure for Export Scheme) has been implement from 1st April every year. TIES provides assistance, establishment and upgradation of infrastructure projects with export linkages such as border haats, special economic zones, ports and airports etc.
There should be exemption from tax on the earnings from exports to promote sales outside India. Tax laws should be simplifies and keep stable.
There should be an increase in the cash assistance given to the Exporters to meet the competition in the global market. The credit availability should be ensured to the exporters to boost exports in the country.