'Extend trade policy sops to all exporters'

'Extend trade policy sops to all exporters'

The mid-term review of the Foreign Trade Policy (FTP) announced today focuses on leveraging the long term advantages of the goods and services tax (GST), in terms of reduced compliance and logistics costs. There is fear that it could fall further in November with exporters finding it hard to comply with GST. The minister said the Merchandise Exports from India Scheme (MEIS) incentive rate will be raised by 2 percent across the board for labour intensive/MSME sectors.

The government has also increased incentives for services exports by 2%.

"The agenda will include review of problems reported by the state government regarding implementation of GST under scheme of central ministries and other issues related to tax rates along with the review of software changes required in the ministry's schemes", the document said.

The government announced revised incentive figure of 4,567 crores for goods exports and 1,140 crores for the exports of services.

Unveiling the incentives in the 'Mid-Term Review of the Foreign Trade Policy (2015-20)', Commerce and Industry Minister Suresh Prabhu said incentives have been increased by two per cent for merchandise as well as services exports in the labour-intensive and MSME sectors.

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"If you leave the transition problems aside, the GST will benefit exporters the most", Adhia said.

Chaudhary further said that the government is focused on maintaining the share in traditional export markets such as European Union, the United States as well as the focus will be on exploring new markets. However, the commerce ministry delayed the review in a bid to comprehend the impact of the new tax regime on the business of the exporters.

These steps are likely to improve India's ranking in the Logistics Performance Index (LPI) and promote exports and enhanced growth, the release added. We work for the exporters, take up their causes.

The FTP will provide "additional annual incentive of Rs 749 crore for the leather sector, Rs 921 crore for hand-made carpets of silk, handloom, coir, jute products, Rs 1,354 crore for agri products, Rs 759 crore for marine products, Rs 369 crore for telecom, electronic components, Rs 193 crore for medical equipment", the ministry said in a tweet. Assuring the exporters that the Government will sort out these issues together with exporters, Prabhu said, "No new legislation can be made ideal in one go". He said the government has set up a "state-of-the-art" trade analytics division set up in DGFT for data based policy actions, which will improve policy making process and making it a dynamic and evidence driven.

The emphasis of the government, according to Prabhu, will on "Ease of Trading" across borders.

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