Mid-term review of foreign trade policy today

Mid-term review of foreign trade policy today

India's tepid merchandise exports are set to get some tax concessions when the government undertakes mid-term review of the country's foreign trade policy on Tuesday.

Leather, gems and jewellery, footwear and textiles are some of the labour-intensive sectors which may get at least 2% tax benefit under the merchandise export from the India scheme.

The review of FTP comes at a time when India's exports have slipped into negative territory and declined 1.2% in October, after more than a year-long positive growth. Analysts said that the decline in exports in October came due to the GST-related confusion and hardship to exporters.

The mid-term review was earlier supposed to be released before July 1, in line with the introduction of GST. However, it was put off as the government wanted to factor in the feedback from exporters based on their experience with GST. Commerce Minister Suresh Prabhu will unveil the mid-term review of FTP, which is likely to address exporters' concerns. Exporters have been demanding that they be kept out of the ambit of the new indirect tax regime.

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