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Make in India Push for Rs 900 Billion Export Mark
NEW DELHI: The government on Wednesday unveiled the Foreign Trade Policy (FTP) 2015-2020, which aims to double the country's exports of goods and services to $900 billion by 2020.
"The new FTP is likely to boost exports, create more jobs while supporting the Prime Minister's campaign of 'Make in India' and 'Digital India'," Commerce Minister Nirmala Sitharaman said.
"The government aims to increase India's exports of merchandise and services from $465.9 billion in 2013-14 to approximately $900 billion by 2019-20 and to raise India's share in world exports from 2 per cent to 3.5 per cent," Commerce Secretary Rajeev Kher said.
FTP 2015-20 introduces two new schemes, namely "Merchandise Exports from India Scheme (MEIS)" for export of specified goods to specified markets and "Services Exports from India Scheme (SEIS)" for increasing exports of notified services, in place of a plethora of schemes earlier, with different conditions for eligibility and usage.
With exports declining for three consecutive months in an uncertain global market, the government has also extended the interest subvention scheme of 3 per cent to give select sectors a boost.
Sitharaman said, "The interest subvention scheme has been approved to about `1,625 crore annually for few sectors. We have not decided on the sectors yet. It is still to be finalised."
In order to promote domestic capital goods manufacturing industry, Sitharaman said that export obligation under EPCG scheme would be reduced by 25 per cent and incentives available under the MEIS and SEIS would be extended to the units in the SEZs to make them more attractive for investors. SEZs has lost their sheen after imposition of the minimum alternate tax (MAT) and dividend distribution tax in 2012.
The new FTP also proposes to give higher level of rewards to products with high domestic content and value addition, as compared to products with high import content and less value addition.
The new FTP is also going to provide incentives to e-commerce companies. Firms that export goods through courier or foreign post office using e-commerce of FOB (freight on board) value up to `25,000 per consignment will be entitled for rewards under MEIS. The objective of MEIS is to offset infra inefficiencies and associated costs involved in export of goods,
The goods entitled for benefit under the scheme are handloom, books & periodicals, leather footwear, toys and customised fashion garments.
"Export of such goods under courier regulations shall be allowed manually on pilot basis through airports at New Delhi, Mumbai and Chennai. Department of Revenue shall fast track the implementation of EDI mode at courier terminals," the policy said.
The duty credit scrips would be made freely transferable and usable for payment of customs duty, excise duty and service tax, Sitharaman said.
HIGHLIGHTS
â– Merchandise Export from India Scheme and Service Exports from India Scheme launched
â– Increase exports to $900 bn by 2020
â– Raise India's share in world exports from 2% to 3.5%.
â– No tweaking of policy before the entire period of the policy
â– Export obligation under EPCG scheme reduced to 75%
â– FTP to be aligned to Make in India and Digital India initiatives
â– Interest Subvention Scheme of 3% approved for exporters
â– Unlike annual reviews, FTP will be reviewed after two-and-half years
Make in India Push for Rs 900 Billion Export Mark - The New Indian Express
NEW DELHI: The government on Wednesday unveiled the Foreign Trade Policy (FTP) 2015-2020, which aims to double the country's exports of goods and services to $900 billion by 2020.
"The new FTP is likely to boost exports, create more jobs while supporting the Prime Minister's campaign of 'Make in India' and 'Digital India'," Commerce Minister Nirmala Sitharaman said.
"The government aims to increase India's exports of merchandise and services from $465.9 billion in 2013-14 to approximately $900 billion by 2019-20 and to raise India's share in world exports from 2 per cent to 3.5 per cent," Commerce Secretary Rajeev Kher said.
FTP 2015-20 introduces two new schemes, namely "Merchandise Exports from India Scheme (MEIS)" for export of specified goods to specified markets and "Services Exports from India Scheme (SEIS)" for increasing exports of notified services, in place of a plethora of schemes earlier, with different conditions for eligibility and usage.
With exports declining for three consecutive months in an uncertain global market, the government has also extended the interest subvention scheme of 3 per cent to give select sectors a boost.
Sitharaman said, "The interest subvention scheme has been approved to about `1,625 crore annually for few sectors. We have not decided on the sectors yet. It is still to be finalised."
In order to promote domestic capital goods manufacturing industry, Sitharaman said that export obligation under EPCG scheme would be reduced by 25 per cent and incentives available under the MEIS and SEIS would be extended to the units in the SEZs to make them more attractive for investors. SEZs has lost their sheen after imposition of the minimum alternate tax (MAT) and dividend distribution tax in 2012.
The new FTP also proposes to give higher level of rewards to products with high domestic content and value addition, as compared to products with high import content and less value addition.
The new FTP is also going to provide incentives to e-commerce companies. Firms that export goods through courier or foreign post office using e-commerce of FOB (freight on board) value up to `25,000 per consignment will be entitled for rewards under MEIS. The objective of MEIS is to offset infra inefficiencies and associated costs involved in export of goods,
The goods entitled for benefit under the scheme are handloom, books & periodicals, leather footwear, toys and customised fashion garments.
"Export of such goods under courier regulations shall be allowed manually on pilot basis through airports at New Delhi, Mumbai and Chennai. Department of Revenue shall fast track the implementation of EDI mode at courier terminals," the policy said.
The duty credit scrips would be made freely transferable and usable for payment of customs duty, excise duty and service tax, Sitharaman said.
HIGHLIGHTS
â– Merchandise Export from India Scheme and Service Exports from India Scheme launched
â– Increase exports to $900 bn by 2020
â– Raise India's share in world exports from 2% to 3.5%.
â– No tweaking of policy before the entire period of the policy
â– Export obligation under EPCG scheme reduced to 75%
â– FTP to be aligned to Make in India and Digital India initiatives
â– Interest Subvention Scheme of 3% approved for exporters
â– Unlike annual reviews, FTP will be reviewed after two-and-half years
Make in India Push for Rs 900 Billion Export Mark - The New Indian Express
