FTP is undergoing a mid-term review: Sitharaman
The Dollar Business Bureau
Commerce and Industry Nirmala Sitharaman said that the Foreign Trade Policy (FTP) is in the mid-term review in consultation with all stakeholders to find out if any support is needed for certain sectors to further enhance exports.
“When it (FTP) was announced in 2015, we had said we will go in for a mid-term review so that if there is any tweaking that has to be done, it will be done," she said at the Vibrant Gujarat summit in Gandhinagar.
The current FTP is the first such five-year plan India unveiled in 2015 with the goal of doubling exports of goods and services to $900 billion by 2020.
This target seems unrealistic given how exports have declined significantly post-2014 due to a slowdown in global demand. After having achieved a record high of $312 billion exports in 2013-14, Indian exports have progressively receded to the $310 billion mark in 2014-15, followed by a much more dismal number of $261 billion in 2015-16, a 15.9% fall from the previous year. In fact, the export performance during 2015-16 was the lowest in five years.
Exports witnessed a growth only in June 2015, thereafter again declined in the month July and August. However, from September, the exports are growing. But the situation is still uncertain globally.
The review exercise is going to be done in consultation with all stakeholders to introduce any changes that might help boost exports in particular sectors. Expanding India’s export base to a larger number of commodities would be a good strategy to pursue.
The states had also been asked to appoint export commissioners and formulate an export policy in line with the FTP, which would be specific to their strengths and resources, said Sitharaman.
When asked about the government’s decision on the demands made by Apple with respect to setting up manufacturing facilities in India, the Minister said that no call has been taken yet. A final say on the matter is likely to emerge after Apple’s meeting with the top brass at the Centre on January 25, 2017.
However, the government has admitted that giving in to the demands of Apple would mean changing the rules for the entire industry, as it would be unfair to the other international phone-making companies like Samsung, which enjoy no such exemptions.
