The government extended the existing foreign trade policy (FTP) for another six months on Wednesday until September 30 this year due to the Covid-19 pandemic, according to a notification.
FTP provides guidelines for improving exports in order to stimulate economic growth and create jobs.
On March 31, 2020, the government extended the 2015-20 foreign trade policy for one year until March 31, 2021, amid the coronavirus epidemic and lockdown.
“The existing 2015-20 FTP, which is valid until March 31, 2021, is extended until September 30, 2021,” the Directorate-General for Foreign Trade said in a notification.
The Commerce Ministry said that in view of the unprecedented situation arising from the pandemic, which persists, the government has decided to continue to benefit from the various export promotion programs by expanding the existing policy.
A similar extension is also made in the associated procedures, extending the validity of the Procedures Manual, he said.
“The exemption from payment of the IGST (integrated tax on products and services) and the cessation of compensation on imports made within the framework of advance authorizations / EPCG (promotion of exports of capital goods) and by EOUs (Export Oriented Units) etc. have also been extended until Sept. 30, 2021, ”he says.
The additional validity period of status holder certificates is also extended, which will allow them to continue to enjoy the specified benefits.
Exports from April to February this fiscal year fell 12.23 percent to $ 256 billion. Imports during the period also fell 23.11 percent to $ 340.8 billion, leaving a trade deficit of $ 84.62 billion.