Last year, the government had extended the policy till 31 March, 2021, in light of Covid-19, to help exporters grapple with the pandemic and the slowdown induced by it.
Under the FTP, the government offers incentives under various import-linked export schemes such as Duty Free Import Authorisation (DFIA) and Export Promotion Capital Goods (EPCG).
Under EPCG, exporters can import certain amounts of capital goods at zero duty for upgrading technology related with exports while DFIA allows them to import certain goods like sugar at zero duty.
While the six-year policy has been extended for another six months as India witnesses a second wave of the Covid-19 pandemic, a call on a fresh policy for 2021-2026 is also expected soon as the government continues discussions with stakeholders on the same.
Exports during April-February this fiscal dipped by 12.23 per cent to USD 256 billion. Imports during the period too declined by 23.11 per cent to USD 340.8 billion, leaving a trade deficit of USD 84.62 billion.
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