Foreign trade policy to be unveiled soon, says Nirmala Sitharaman

The much-delayed Foreign Trade Policy (FTP), which will roll out steps to boost exports, is expected to be unveiled soon, Commerce and Industry Minister Nirmala Sitharaman said on Wednesday.

When asked about the expected time for announcement of the policy, Sitharaman said, "It has to be happening sooner."

The minister was talking to reporters on the sidelines of Shri Ram Economics Summit in the national capital.

The announcement of the FTP (2014-19) has been delayed as ministries of commerce and finance are yet to take the final call on granting tax incentives for export promotion schemes.

The foreign trade policy, which is usually announced in April, provides guidelines for enhancing exports with the overall objective of pushing economic growth and generating employment.

Under the policy, the government gives fiscal incentives to exporters under different promotion schemes such as Market Access Initiative, Marketing Development Assistance, Vishesh Krishi and Gram Udyog Yojana, Focus Market Scheme, Focus Product Scheme and Market Linked Focus Products Scrip.

The Finance Ministry has to allocate funds for these schemes.

Exporters have already raised concerns over the delay in announcement of the FTP as ten months of the 2014-15 financial year are already over.

The country's trade deficit declined to a 10-month low of US $9.43 billion in December mainly on account of falling imports due to slump in crude prices though exports too have come down.

Further on her meeting with US Commerce Secretary Penny Pritzker, she said a joint group will be set up which would have officials from both the countries to look at ways to boost investments in the country.

The joint forum will identify and prioritise areas where investments and technology sharing can be done.

"All these are going to be institutionalised and rapidly taken up from March," Sitharaman said.

On intellectual property rights (IPRs) related issues with the US, Sitharaman said the American government can comment on the draft policy which is in public domain.