The new FTP has received subdued response from the Federation of Indian Exports Organisations (FIEO). However, the federation said the new policy will increase competitiveness.

The relaxation in export obligation on domestic procurement, which is likely to drive domestic manufacturing growth, was applauded by FIEO. This move is likely to help decrease imports, and as a consequence help narrow the country’s widening trade deficit.

M. Rafeeque Ahmed, President of FIEO, also welcomed the extension of incremental incentivisation scheme and coverage of 53 countries of Latin America and Africa under it to provide a fillip to exports.

He also called for making foreign currency loan available to medium, small and micro enterprises sector.

While Ahmed said that the announcement on reducing the land requirement for SEZs by 50 per cent and linking it to built-up area will help renew interest in SEZs, but added that some tax concessions are needed to push this sector.

However Ahmed also elicited disappointment with the withdrawal of status holder scheme and change in calculation criteria for benefits under served from India scheme, which is likely to hit status holders and service sectors, especially the hotel industry.

AEPC hails FTP

Meanwhile, the Apparel Export Promotion Council (AEPC) applauded the new FTP. AEPC Chairman A. Sakthivel, said, “Measure like expansion of zero duty EPCG scheme, extension of TUFs benefits to EPCG, announcements on promotion of incremental exports and winding the ambit of market and product focus scheme, and extension of interest subvention till March 2014, will help in promotion of garment exports from India.”

The new CII President, Kris Gopalakrishnan, however, said more was expected from the new trade policy.

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