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Foreign Trade Policy Reveals Key Initiatives
The Ministry of Commerce and Industry has announced the Annual Supplement 2012-2013 to the Foreign Trade Policy 2009-14 ("FTP"). The key policy measures include thrust to employment intensive industry, encouragement to domestic manufacturing for exports, promote technological upgrades, strong market diversification, encouragement of exports from North-Eastern Region, incentivise manufacturing of green technology products and reduction in transaction cost. Taxand India examines the new initiatives to discover the tax aspects that multinationals in India need to be aware of.
The salient aspects of the Annual Supplement to the FTP are highlighted below.
Duty Exemption and Remission Schemes:
- Export Promotion Capital Goods Scheme ("EPCG")
- Post-Export EPCG Scheme
- Advance Authorisation Scheme
The Annual Supplement announced by the Commerce Ministry has emphasised the need to aid exporters and make them competitive in the global markets. Steps have been taken to achieve the export target of USD 500 billion by 2013-14 and expand India's footprint in the global trade by supporting deeper penetration of Indian exports in new markets and new products.
The Annual Supplement has clearly laid emphasis on granting/ extending benefits and reducing transaction cost associated with exports; extension of Zero Duty EPCG scheme, introduction of Post-Export EPCG scheme, addition of new markets and products to the Export Promotion Schemes, commitment to revamp of the SEZ, EOU and Deemed Export Schemes are some of the key examples of the Government's endeavor to help the Indian exporters.
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