TPCI Seeks Incentives For SEZs In Next Foreign Trade Policy

Trade & Policy

TPCI Seeks Incentives For SEZs In Next Foreign Trade Policy

The Trade Promotion Council of India (TPCI) suggested the commerce ministry to announce measures such as incentives for special economic zones (SEZs) in the next foreign trade policy (FTP) with a view to boost the country's exports. FTP (2020-25) is under formulation by the ministry. SEZs contribute significantly to exports and employment generation in the country, it said. It said there is a pressing need to allow certain tax incentives in line with the global practice to the exports to Domestic Tariff Area, in order to ensure SEZ survival and its contribution to the exports. It also suggested a separate nodal agency that could be one-point contact of all queries related to uncleared or rejected Indian shipments across global markets. This will facilitate in solving the consignment problems that currently seem to get procrastinated, it added. The Council also said escrow services must be included as the exports services domain, and this should be subject to the agreed terms and conditions between buyer and seller through secured platforms. The other recommendations include CODEX standards may be implemented as a benchmark for domestic standards as it will reduce the probability of rejections of consignments.