The Foreign Trade Policy (FTP) is set to be unveiled on August 27. This will be Commerce Minister Anand Sharma's first policy. CNBC-TV18 learns that the policy is likely to extend the export obligation. “The export obligation period may be extended by one year in,” sources said, adding, more sops can be expected on the export financing. “More stress on labour intensive sectors is expected.”
Commenting on the policy, Sharma said, “The government is sensitive to the needs of exporters.” The policy could have been more supportive for agricultural exports. “The FTP may contain incentives for market diversification as well,” he added.
What to expect?
There are a couple of points that we have picked up. One is the export obligation period is likely to be extended by one more year. That apart, the policy may bring in easier financing on the export front—possibly a slightly higher level of export subvention.
Apart from that what we really need to find out is will Anand Sharma clearly provide indications to what will be the future of the policy once the goods and services tax (GST) regime comes in. Also, there are some indications that the structure of the policy, the way it deals with several issues is going to be new. But of course for that we will have to wait for the policy to be unveiled.
The heart of this policy is the labour intensive sectors and the sectors that India depends on. Considering the slowdown, an extension of some measures have already been put in place.
Source : Moneycontrol.com