Post Date : April 1, 2021
The Centre on Wednesday extended the foreign trade policy that facilitates export-linked incentives till 30th September of this year.
The existing foreign trade policy 2015-2020 was to expire on March 31 this year.
Last year, the Centre had extended the policy till 31 March, 2021, due to the pandemic, in order to help the exporters grapple with the pandemic and the slowdown induced by it.
“The existing FTP 2015-20, which is valid up to March 31, 2021 is extended up to September 30, 2021,” the Directorate General of Foreign Trade said in a notification.
Under the FTP, the government offers incentives under various import-linked export schemes such as Duty Free Import Authorisation (DFIA) and Export Promotion Capital Goods (EPCG).
Exporters can import certain amounts of capital goods at zero duty for upgrading technology related with exports while DFIA allows them to import certain goods like sugar at zero duty, under EPCG.
While the six-year policy has been extended for another six month, a call on a fresh policy for 2021-2026 is also expected soon as the government continues discussions with stakeholders on the same.
Exports during April-February this fiscal dropped by 12.23 per cent to USD 256 billion while imports during the period too declined by 23.11 per cent to USD 340.8 billion, leaving a trade deficit of USD 84.62 billion.