India Inc. has been pleased with increasing export promotion schemes of the Foreign Trade Policy (FTP), which has led to an increase in a number of export promotion schemes.
Sanjaya Baru, Ficci’s Secretary General was quoted saying: "Mid-term review of the FTP 2015-20 contains several positive features. Ficci is happy to see across-the-board rise of 2 per cent in MEIS (Merchandise Exports from India Scheme) incentive for exports by MSMEs (Micro, Small & Medium Enterprises) and labour intensive sectors.This step was much-needed."
He singled out the new ‘trust-based’ approach for praise. This approach is part of the self-ratification scheme for the import of duty free raw materials. This is expected to assist an array of important products such as engineering, pharmaceuticals, chemicals, textiles and high-tech products to a great degree. Baru revealed during the FTP mid-term review.
These measures will prove to be very useful in due time, but the General Secretary also stressed on the importance of effective exchange rate management which will have a critical role to play in increasing the quantity of exports from India.
Besides incentives, the mid-term review of the FTP (2015-2020) "clearly focusses" on strategies to enhance exports, said Deloitte India's Senior Director R. Muralidharan.
The more revised FTP will now lay emphasis on leveraging benefits of GST by exporters, more careful monitoring of exports and taking corrective steps on data analysis. Increasing productivity of agriculture and more cross-border trade will also be priorities.