NEW DELHI, 31st March, 2021 (WAM) – Taking into account the disruptions to business caused by COVID-19, India’s Ministry of Commerce and Industry today announced an extension of the Foreign Trade Policy of the government by six months until 30th September 2021. The policy was to have expired on 31st March.
"The government has decided to continue benefits under various export promotion schemes by extending its existing Foreign Trade Policy by six months up to 30th September, 2021 which will provide continuity in the policy regime," an announcement by the Ministry said. "Similar extension is made in the related procedures, by extending validity of Hand Book of Procedures."
The extension will come as a relief to Indian businessmen who export to the UAE, which is the second biggest destination for Indian exports after the US. The UAE is India's third largest overall trading partner counting exports and imports together, according to the Ministry of Commerce here.
The extension will put at ease businessmen in the UAE who import from India, who may have been concerned about uncertainties with the anticipated expiry of trade policy at the end of this month. The present Policy came into force on 1st April 2015, and was valid for five years. Last year it was extended up to 31st March, 2021 in view of the "unprecedented situation arising out of the pandemic COVID-19."
Exemption from payment of Integrated Goods and Services Tax (IGST) and Compensation Cess on imports has also been extended up to September end. The IGST is applicable on any supply of goods and services in both cases of imports into India and exports from India.
"Similarly, validity period of the Status Holder Certificates is also extended. This will enable the Status Holders to continue to avail the specified facilities and benefits."
WAM/Krishnan Nayar