The announcement of new Foreign Trade Policy (FTP) is likely to be delayed as ministries of commerce and finance are yet to take a final call on granting tax incentives to export promotion schemes.
The FTP or its annual review, which is usually announced in April, gives guidelines for enhancing exports with the overall objective of pushing economic growth and generating employment.
“Issues related with export promotion schemes are yet to be finalised. The issues would be discussed between commerce and finance ministers,” sources said. However, they added that a lot of ground work has been completed for the five-year trade policy for 2014-19.
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.