Simpler export promotion schemes envisaged in new FTP

As the validity of the current Foreign Trade Policy ends on March 31, 2020, the Ministry of Commerce and Industry is considering rationalizing and simplifying certain export promotion schemes. These include schemes such as EPCG, which allows an exporter to import a certain amount of capital goods at zero duty for upgrading technology related with exports. According to officials, the scheme also encompasses new chapters for services, and e-commerce exports besides simplifying advance authorisation and self ratification schemes. The revamped policy is likely to have changes in incentives given to goods as the current export promotion schemes are challenged by the US in the dispute resolution mechanism of the World Trade Organisation (WTO).