To boost the exports related to foreign trade The Indian government is working to amend its strategies and rethinking on the trade incentives which are currently under pressure of appreciating rupee and lower demands from International markets.
In September 2017 Nirmala Sitharaman who is the Commerce and industry minister, for a midterm check suggesting to the centre for a review of the Foreign Trade Policy (FTP) 2015-¬20. Before the meeting with the stakeholders, she had told that to give us inputs we have asked stakeholders, whoever is interested. We are looking at it in-depth and in all its details. on Saturday These consultations were done.
By 2020, with an export target of $900 billion (approximately Rs.58 lakh crore) to be reached the FTP was announced In 2015. During 2016-¬17, Indian Merchandise shipments reached $275 billion (Rs.17,70,000 crore). Every year Exports have to grow at a pace of 14% and by 2020 hopefully, it will reach the fixed target. As in trading the US and some other developed countries are becoming more protective this target doesn’t look easy to attain.
A lot has changed between 2014 and today and Exports are happening, but there is the depressed situation is a global trade. Sitharaman further told that India went through a bad patch and is now recovering.
Impacting the policy, Make in India is one of the main factors. Using local components and value addition than products the FTP gives more incentives to products using a higher amount of imported parts and lower value addition.
To a few sectors, the government may further give special rewards and out of the selected 25 areas in the Made in India program. To gel with the GST FTP may need a slight change which has been proposed to start in July 2017. Like Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) FTP 2015-¬20 had brought. There were multiple schemes earlier and those were removed and with separate usage, these schemes were introduced and also multiple schemes were replaced by eligibility conditions schemes. To the E-commerce of handicrafts, handlooms, and books and more these schemes reward SEZs also besides providing incentives.