Correcting imbalances<\/strong><\/h3>\n\n\n\nA continual demand of exporters\/importers\nis rectifying the imbalances in the global trade processes. At the meeting, the\nministry promised to reduce \u201clocal & foreign framework for lessening\ntransaction cost & promoting ease of doing business\u201d.<\/p>\n\n\n\n
It also emphasized the creation of\ncost-effective, efficient & adequate logistical & utility\ninfrastructure\u201d. <\/p>\n\n\n\n
District Export Hubs<\/strong><\/h3>\n\n\n\nThe Government shall pinpoint potential products\n& services in each district, identify toy clusters & agricultural, map\nGI products, establish district export action & district export promotion\npanels as part of this initiative targeted at farmers & small businesses. <\/p>\n\n\n\n
Foreign Trade Policy 2021-2026: What to Expect? \u200d<\/h2>\n\n\n\n
Covid-19 is detrimental to global trade. In FY 2020, India has registered a record decline of 60 % and 59 % in terms of export and import, respectively. Though there has been some recovery, the road to complete turnaround is long and hard. That is why everybody is expecting the new Foreign Trade Policy to make some ground-breaking move. Following are the key expectation from the new Foreign Trade Policy based on the input from members of Parliament, high-level advisory group, trade associations, and traders. <\/p>\n\n\n\n
![\"Foreign](\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/Foreign-Trade-Policy-2021-2026-What-to-Expect.png\")
<\/figure><\/div>\n\n\n\nWTO-compliant tax <\/strong>benefits<\/h3>\n\n\n\nWith incentives under SEIS & MEIS under the\ncloud, the WTO-compliant tax benefits are eagerly awaited. To this end, the\nGovernment has unveiled RoDTEP, i.e. Remission of Duties or Taxes on Export\nProducts scheme, on Jan 1, 2021. However, the rates & the conditions of the\nschemes are still under the cloud. <\/p>\n\n\n\n
Relaxed credit access<\/strong><\/h3>\n\n\n\nAccessibility to credit has remained the\nlong-standing demand of exporters. Under the non-availability of collateral,\nMSMEs are less likely to get credit from mainstream financial institutions. The\npolicy can open the door to easy credit options such as financial technology\nstart-ups. The advisory group recommends increasing the borrowing limit at the\nEXIM bank of India.<\/p>\n\n\n\n
Infrastructure up gradation<\/strong><\/h3>\n\n\n\nFor years, China has outweighed other nations in terms of export because of its unprecedented domestic infrastructure. India has a lot to learn from China in this context. At present, India must consider improving its\u00a0dwindling infrastructure through the up-gradation of existing ports, warehouses, certification centres, etc.\u00a0<\/p>\n\n\n\n
The scheme, viz Infrastructure for Export Sector, was introduced by GOI in FY 2017 to promote exports for the period of 3 years. Many industry experts are hoping for the extension of the same.\u00a0<\/p>\n\n\n\n
Fewer subsidy and increased support<\/strong><\/h3>\n\n\n\nIn FY 2020, the honorable\u00a0Commerce Minister states that subsidies are less likely to play a vital role in increasing the overall trade. The factors like quality, the scale of production & technology shall be game-changer in this regard. Most industry experts also agreed to this paradigm.\u00a0<\/p>\n\n\n\n
Likewise, the trade policy could entail\nincentives focusing on R&D, something the Government emphasized in the\npast. From the technology standpoint, the Amended Technology Upgradation Fund\nScheme \u2013 that entirely focused on improving productivity, investment, exports\n& quality in the textile industry via technology upgrades \u2013 can be passed\non to other sectors. <\/p>\n\n\n\n
Tax Breaks<\/strong><\/h3>\n\n\n\nIf India were opted out of subsidies,\nexporters would still seek some resilience from the Government. Easier &\nreduced taxes could fill this gap. The simplification of duty structures &\nreduction of corporate tax rates is long-standing demands.<\/p>\n\n\n\n
The Confederation of Indian Industry advises\nsimplifying import duty structure via higher duties on finished goods &\nreduced duties on raw material & intermediates. There have been consistent\ndemands for an overhaul of prevailing schemes such as Duty Drawback & EPCG. <\/p>\n\n\n\n
E-commerce &Digitization<\/strong><\/h3>\n\n\n\nWith Covid-19 hampering conventional supply\nchains, India seeks upgraded trade practices. E-commerce & Digitization\ncould offer great resilience in this regard. Digitization can be a game-changer\nas it can speed up stubborn import-export processes by mitigating manual\nintervention. <\/p>\n\n\n\n
The Nasscom, an apex government institution, suggests a web-based portal for Import Export Code<\/strong><\/a>\u00a0holders to modify basic details such as email ID and contact number.\u00a0\u00a0<\/p>\n\n\n\nIt also makes a case of advocating e-commerce\nexports by;<\/p>\n\n\n\n
- Inculcating e-commerce export portal under Niryat Bandhu (a scheme for mentoring new business aspirants in global trade<\/li>
- Inculcating e-commerce export promotion cells under the ambit of export promotion councils<\/li>
- Inculcating e-Commerce Export Zones to encourage MSMEs<\/strong><\/a>.<\/li><\/ul>\n\n\n\n
Inculcation of Export awareness protocols<\/strong><\/h3>\n\n\n\nSometimes, the lack of awareness regarding trade opportunities acts as a major deterrent to the Indian exporters. There is a need for a sound trade policy that embraces new awareness practices for traders regarding global markets, IPRs, international laws and standards, patents, and geographical indication (GI).\u00a0<\/p>\n\n\n\n
Regulatory Relaxation for Importers <\/strong><\/h3>\n\n\n\nThe overall development of the trading regime does not only depend on export but also import activities. At present, the importers in India are confronting a heap of limitations that acts as a deterrent for their business. For the time being, these importers are in desperate need of certain measures such as;\u00a0<\/p>\n\n\n\n
- Permission for the importation of capital goods on a self-certification basis<\/li>
- Inculcation of Central government<\/em><\/strong>[1]<\/em><\/strong><\/a><\/sup>-approved Board of Approval for the importation of prohibited goods<\/li><\/ul>\n\n\n\n
Conclusion<\/h2>\n\n\n\n
It’s expected that the new Foreign Trade Policy 2021-26 will fit well to the Government\u2019s commitment of a $5-trillion economy. However, it would be interesting to see how it will works in a real-world scenario, given the ongoing pandemic.\u00a0\u00a0 <\/p>\n\n\n\n
The Government shall pinpoint potential products\n& services in each district, identify toy clusters & agricultural, map\nGI products, establish district export action & district export promotion\npanels as part of this initiative targeted at farmers & small businesses. <\/p>\n\n\n\n
Foreign Trade Policy 2021-2026: What to Expect? \u200d<\/h2>\n\n\n\n
Covid-19 is detrimental to global trade. In FY 2020, India has registered a record decline of 60 % and 59 % in terms of export and import, respectively. Though there has been some recovery, the road to complete turnaround is long and hard. That is why everybody is expecting the new Foreign Trade Policy to make some ground-breaking move. Following are the key expectation from the new Foreign Trade Policy based on the input from members of Parliament, high-level advisory group, trade associations, and traders. <\/p>\n\n\n\n
<\/figure><\/div>\n\n\n\nWTO-compliant tax <\/strong>benefits<\/h3>\n\n\n\nWith incentives under SEIS & MEIS under the\ncloud, the WTO-compliant tax benefits are eagerly awaited. To this end, the\nGovernment has unveiled RoDTEP, i.e. Remission of Duties or Taxes on Export\nProducts scheme, on Jan 1, 2021. However, the rates & the conditions of the\nschemes are still under the cloud. <\/p>\n\n\n\n
Relaxed credit access<\/strong><\/h3>\n\n\n\nAccessibility to credit has remained the\nlong-standing demand of exporters. Under the non-availability of collateral,\nMSMEs are less likely to get credit from mainstream financial institutions. The\npolicy can open the door to easy credit options such as financial technology\nstart-ups. The advisory group recommends increasing the borrowing limit at the\nEXIM bank of India.<\/p>\n\n\n\n
Infrastructure up gradation<\/strong><\/h3>\n\n\n\nFor years, China has outweighed other nations in terms of export because of its unprecedented domestic infrastructure. India has a lot to learn from China in this context. At present, India must consider improving its\u00a0dwindling infrastructure through the up-gradation of existing ports, warehouses, certification centres, etc.\u00a0<\/p>\n\n\n\n
The scheme, viz Infrastructure for Export Sector, was introduced by GOI in FY 2017 to promote exports for the period of 3 years. Many industry experts are hoping for the extension of the same.\u00a0<\/p>\n\n\n\n
Fewer subsidy and increased support<\/strong><\/h3>\n\n\n\nIn FY 2020, the honorable\u00a0Commerce Minister states that subsidies are less likely to play a vital role in increasing the overall trade. The factors like quality, the scale of production & technology shall be game-changer in this regard. Most industry experts also agreed to this paradigm.\u00a0<\/p>\n\n\n\n
Likewise, the trade policy could entail\nincentives focusing on R&D, something the Government emphasized in the\npast. From the technology standpoint, the Amended Technology Upgradation Fund\nScheme \u2013 that entirely focused on improving productivity, investment, exports\n& quality in the textile industry via technology upgrades \u2013 can be passed\non to other sectors. <\/p>\n\n\n\n
Tax Breaks<\/strong><\/h3>\n\n\n\nIf India were opted out of subsidies,\nexporters would still seek some resilience from the Government. Easier &\nreduced taxes could fill this gap. The simplification of duty structures &\nreduction of corporate tax rates is long-standing demands.<\/p>\n\n\n\n
The Confederation of Indian Industry advises\nsimplifying import duty structure via higher duties on finished goods &\nreduced duties on raw material & intermediates. There have been consistent\ndemands for an overhaul of prevailing schemes such as Duty Drawback & EPCG. <\/p>\n\n\n\n
E-commerce &Digitization<\/strong><\/h3>\n\n\n\nWith Covid-19 hampering conventional supply\nchains, India seeks upgraded trade practices. E-commerce & Digitization\ncould offer great resilience in this regard. Digitization can be a game-changer\nas it can speed up stubborn import-export processes by mitigating manual\nintervention. <\/p>\n\n\n\n
The Nasscom, an apex government institution, suggests a web-based portal for Import Export Code<\/strong><\/a>\u00a0holders to modify basic details such as email ID and contact number.\u00a0\u00a0<\/p>\n\n\n\nIt also makes a case of advocating e-commerce\nexports by;<\/p>\n\n\n\n
- Inculcating e-commerce export portal under Niryat Bandhu (a scheme for mentoring new business aspirants in global trade<\/li>
- Inculcating e-commerce export promotion cells under the ambit of export promotion councils<\/li>
- Inculcating e-Commerce Export Zones to encourage MSMEs<\/strong><\/a>.<\/li><\/ul>\n\n\n\n
Inculcation of Export awareness protocols<\/strong><\/h3>\n\n\n\nSometimes, the lack of awareness regarding trade opportunities acts as a major deterrent to the Indian exporters. There is a need for a sound trade policy that embraces new awareness practices for traders regarding global markets, IPRs, international laws and standards, patents, and geographical indication (GI).\u00a0<\/p>\n\n\n\n
Regulatory Relaxation for Importers <\/strong><\/h3>\n\n\n\nThe overall development of the trading regime does not only depend on export but also import activities. At present, the importers in India are confronting a heap of limitations that acts as a deterrent for their business. For the time being, these importers are in desperate need of certain measures such as;\u00a0<\/p>\n\n\n\n
- Permission for the importation of capital goods on a self-certification basis<\/li>
- Inculcation of Central government<\/em><\/strong>[1]<\/em><\/strong><\/a><\/sup>-approved Board of Approval for the importation of prohibited goods<\/li><\/ul>\n\n\n\n
Conclusion<\/h2>\n\n\n\n
It’s expected that the new Foreign Trade Policy 2021-26 will fit well to the Government\u2019s commitment of a $5-trillion economy. However, it would be interesting to see how it will works in a real-world scenario, given the ongoing pandemic.\u00a0\u00a0 <\/p>\n\n\n\n
Accessibility to credit has remained the\nlong-standing demand of exporters. Under the non-availability of collateral,\nMSMEs are less likely to get credit from mainstream financial institutions. The\npolicy can open the door to easy credit options such as financial technology\nstart-ups. The advisory group recommends increasing the borrowing limit at the\nEXIM bank of India.<\/p>\n\n\n\n
Infrastructure up gradation<\/strong><\/h3>\n\n\n\nFor years, China has outweighed other nations in terms of export because of its unprecedented domestic infrastructure. India has a lot to learn from China in this context. At present, India must consider improving its\u00a0dwindling infrastructure through the up-gradation of existing ports, warehouses, certification centres, etc.\u00a0<\/p>\n\n\n\n
The scheme, viz Infrastructure for Export Sector, was introduced by GOI in FY 2017 to promote exports for the period of 3 years. Many industry experts are hoping for the extension of the same.\u00a0<\/p>\n\n\n\n
Fewer subsidy and increased support<\/strong><\/h3>\n\n\n\nIn FY 2020, the honorable\u00a0Commerce Minister states that subsidies are less likely to play a vital role in increasing the overall trade. The factors like quality, the scale of production & technology shall be game-changer in this regard. Most industry experts also agreed to this paradigm.\u00a0<\/p>\n\n\n\n
Likewise, the trade policy could entail\nincentives focusing on R&D, something the Government emphasized in the\npast. From the technology standpoint, the Amended Technology Upgradation Fund\nScheme \u2013 that entirely focused on improving productivity, investment, exports\n& quality in the textile industry via technology upgrades \u2013 can be passed\non to other sectors. <\/p>\n\n\n\n
Tax Breaks<\/strong><\/h3>\n\n\n\nIf India were opted out of subsidies,\nexporters would still seek some resilience from the Government. Easier &\nreduced taxes could fill this gap. The simplification of duty structures &\nreduction of corporate tax rates is long-standing demands.<\/p>\n\n\n\n
The Confederation of Indian Industry advises\nsimplifying import duty structure via higher duties on finished goods &\nreduced duties on raw material & intermediates. There have been consistent\ndemands for an overhaul of prevailing schemes such as Duty Drawback & EPCG. <\/p>\n\n\n\n
E-commerce &Digitization<\/strong><\/h3>\n\n\n\nWith Covid-19 hampering conventional supply\nchains, India seeks upgraded trade practices. E-commerce & Digitization\ncould offer great resilience in this regard. Digitization can be a game-changer\nas it can speed up stubborn import-export processes by mitigating manual\nintervention. <\/p>\n\n\n\n
The Nasscom, an apex government institution, suggests a web-based portal for Import Export Code<\/strong><\/a>\u00a0holders to modify basic details such as email ID and contact number.\u00a0\u00a0<\/p>\n\n\n\nIt also makes a case of advocating e-commerce\nexports by;<\/p>\n\n\n\n
- Inculcating e-commerce export portal under Niryat Bandhu (a scheme for mentoring new business aspirants in global trade<\/li>
- Inculcating e-commerce export promotion cells under the ambit of export promotion councils<\/li>
- Inculcating e-Commerce Export Zones to encourage MSMEs<\/strong><\/a>.<\/li><\/ul>\n\n\n\n
Inculcation of Export awareness protocols<\/strong><\/h3>\n\n\n\nSometimes, the lack of awareness regarding trade opportunities acts as a major deterrent to the Indian exporters. There is a need for a sound trade policy that embraces new awareness practices for traders regarding global markets, IPRs, international laws and standards, patents, and geographical indication (GI).\u00a0<\/p>\n\n\n\n
Regulatory Relaxation for Importers <\/strong><\/h3>\n\n\n\nThe overall development of the trading regime does not only depend on export but also import activities. At present, the importers in India are confronting a heap of limitations that acts as a deterrent for their business. For the time being, these importers are in desperate need of certain measures such as;\u00a0<\/p>\n\n\n\n
- Permission for the importation of capital goods on a self-certification basis<\/li>
- Inculcation of Central government<\/em><\/strong>[1]<\/em><\/strong><\/a><\/sup>-approved Board of Approval for the importation of prohibited goods<\/li><\/ul>\n\n\n\n
Conclusion<\/h2>\n\n\n\n
It’s expected that the new Foreign Trade Policy 2021-26 will fit well to the Government\u2019s commitment of a $5-trillion economy. However, it would be interesting to see how it will works in a real-world scenario, given the ongoing pandemic.\u00a0\u00a0 <\/p>\n\n\n\n
In FY 2020, the honorable\u00a0Commerce Minister states that subsidies are less likely to play a vital role in increasing the overall trade. The factors like quality, the scale of production & technology shall be game-changer in this regard. Most industry experts also agreed to this paradigm.\u00a0<\/p>\n\n\n\n
Likewise, the trade policy could entail\nincentives focusing on R&D, something the Government emphasized in the\npast. From the technology standpoint, the Amended Technology Upgradation Fund\nScheme \u2013 that entirely focused on improving productivity, investment, exports\n& quality in the textile industry via technology upgrades \u2013 can be passed\non to other sectors. <\/p>\n\n\n\n
Tax Breaks<\/strong><\/h3>\n\n\n\nIf India were opted out of subsidies,\nexporters would still seek some resilience from the Government. Easier &\nreduced taxes could fill this gap. The simplification of duty structures &\nreduction of corporate tax rates is long-standing demands.<\/p>\n\n\n\n
The Confederation of Indian Industry advises\nsimplifying import duty structure via higher duties on finished goods &\nreduced duties on raw material & intermediates. There have been consistent\ndemands for an overhaul of prevailing schemes such as Duty Drawback & EPCG. <\/p>\n\n\n\n
E-commerce &Digitization<\/strong><\/h3>\n\n\n\nWith Covid-19 hampering conventional supply\nchains, India seeks upgraded trade practices. E-commerce & Digitization\ncould offer great resilience in this regard. Digitization can be a game-changer\nas it can speed up stubborn import-export processes by mitigating manual\nintervention. <\/p>\n\n\n\n
The Nasscom, an apex government institution, suggests a web-based portal for Import Export Code<\/strong><\/a>\u00a0holders to modify basic details such as email ID and contact number.\u00a0\u00a0<\/p>\n\n\n\nIt also makes a case of advocating e-commerce\nexports by;<\/p>\n\n\n\n
- Inculcating e-commerce export portal under Niryat Bandhu (a scheme for mentoring new business aspirants in global trade<\/li>
- Inculcating e-commerce export promotion cells under the ambit of export promotion councils<\/li>
- Inculcating e-Commerce Export Zones to encourage MSMEs<\/strong><\/a>.<\/li><\/ul>\n\n\n\n
Inculcation of Export awareness protocols<\/strong><\/h3>\n\n\n\nSometimes, the lack of awareness regarding trade opportunities acts as a major deterrent to the Indian exporters. There is a need for a sound trade policy that embraces new awareness practices for traders regarding global markets, IPRs, international laws and standards, patents, and geographical indication (GI).\u00a0<\/p>\n\n\n\n
Regulatory Relaxation for Importers <\/strong><\/h3>\n\n\n\nThe overall development of the trading regime does not only depend on export but also import activities. At present, the importers in India are confronting a heap of limitations that acts as a deterrent for their business. For the time being, these importers are in desperate need of certain measures such as;\u00a0<\/p>\n\n\n\n
- Permission for the importation of capital goods on a self-certification basis<\/li>
- Inculcation of Central government<\/em><\/strong>[1]<\/em><\/strong><\/a><\/sup>-approved Board of Approval for the importation of prohibited goods<\/li><\/ul>\n\n\n\n
Conclusion<\/h2>\n\n\n\n
It’s expected that the new Foreign Trade Policy 2021-26 will fit well to the Government\u2019s commitment of a $5-trillion economy. However, it would be interesting to see how it will works in a real-world scenario, given the ongoing pandemic.\u00a0\u00a0 <\/p>\n\n\n\n
With Covid-19 hampering conventional supply\nchains, India seeks upgraded trade practices. E-commerce & Digitization\ncould offer great resilience in this regard. Digitization can be a game-changer\nas it can speed up stubborn import-export processes by mitigating manual\nintervention. <\/p>\n\n\n\n
The Nasscom, an apex government institution, suggests a web-based portal for Import Export Code<\/strong><\/a>\u00a0holders to modify basic details such as email ID and contact number.\u00a0\u00a0<\/p>\n\n\n\n It also makes a case of advocating e-commerce\nexports by;<\/p>\n\n\n\n Sometimes, the lack of awareness regarding trade opportunities acts as a major deterrent to the Indian exporters. There is a need for a sound trade policy that embraces new awareness practices for traders regarding global markets, IPRs, international laws and standards, patents, and geographical indication (GI).\u00a0<\/p>\n\n\n\n The overall development of the trading regime does not only depend on export but also import activities. At present, the importers in India are confronting a heap of limitations that acts as a deterrent for their business. For the time being, these importers are in desperate need of certain measures such as;\u00a0<\/p>\n\n\n\n It’s expected that the new Foreign Trade Policy 2021-26 will fit well to the Government\u2019s commitment of a $5-trillion economy. However, it would be interesting to see how it will works in a real-world scenario, given the ongoing pandemic.\u00a0\u00a0 <\/p>\n\n\n\nInculcation of Export awareness protocols<\/strong><\/h3>\n\n\n\n
Regulatory Relaxation for Importers <\/strong><\/h3>\n\n\n\n
Conclusion<\/h2>\n\n\n\n