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"We are still thinking that whether we need to go for full five year FTP or not... we do not know what is going to happen in (external trade) in the next few months. We do not know what will happen by the end of the year," a senior government official said.
The Commerce Ministry is likely to unveil the FTP next month. The five-year Foreign Trade Policy (FTP) of the previous government ended in March, however, the provisions were extended till a new policy come into effect.
The FTP broadly spells out the priority segments in external trade and also gives incentives and disincentives depending on the country's need.
The extensions of sops like interest subsidy and an insurance cover till March 2010 in Budget indicates that it is not clear by when India's exports, which are on decline since October 2008, would revive, the official said.
Although Commerce Minister Anand Sharma is hoping for the crisis in exports sector to blow over, the officials are not sure whether a turnaround can be expected this year.
India's exports have suffered due to fall in demand due to recession in major markets like the US and Europe.
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No fun in annoucning 5 years policy. Ameendments are many. During 2008-09, more than 176 PNs are issued.An exprter/importer has to keep track of all the changes PNs, Notifications, circulars issued from time to time. Suggested, they announce every year a policy. During 60s the Red book(so called import polciy) was to come every six months. Each April and each Oct.There are no incentives at all. The present EPS(Export Promotion scheme) all about Custom duty credit, exmeptions, concessions. Nutrilisation of Custom Duties. This is accpeted by Customs. Where is the need for DGFT organisation to issue. These things can be centralised with Customs so that the exporters can avoid visiting one Regionla office to get these authorisation, spend money, appoint consultatnt etc etc. This is how they can reduce the cost of EXPORTS. Right time.