Commerce Ministry to soon come out with new foreign trade policy
The Commerce Ministry will soon come out with a new foreign trade policy, which provides guidelines and incentives for increasing exports for the next five financial years 2020-25. The Ministry is giving final touches to the new policy as the validity for the old one will end on March 31, 2020. The Ministry’s arm Directorate General of Foreign Trade (DGFT) is formulating the policy.
The new policy would focus on simplifying procedures for exporters and importers, besides providing incentives to boost outbound shipments. At present, tax benefits are provided under the ‘merchandise export from India’ scheme (MEIS) for goods and ‘services export from India’ scheme (SEIS).
In the new policy, changes are expected in the incentives given to goods as the current export promotion schemes are challenged by the US in the dispute resolution mechanism of WTO. In this backdrop, the government is recasting the incentives to make them compliant with global trade rules.
DGFT has issued followings trade notices keeping in mind the review of the existing Foreign Trade Policy :