The FTP is likely to include key elements from a national logistics policy that has been in the works for months. Over the next five years, this policy aims to reduce logistics costs from 13% to 8% of GDP, significantly improving India’s trade competitiveness.
Even though certain key export schemes, such as those relating to special economic zones (SEZs) and export-oriented units, have been challenged at the World Trade Organization (WTO), sources told FE that the government will likely keep them in the next foreign trade policy. Any new scheme within the FTP, on the other hand, will be designed following WTO requirements, according to one of the sources.
According to one of the sources, from October 1, the new FTP for the next five years is expected to be implemented. In the aftermath of the unprecedented Covid-19 pandemic, the FTP will concentrate on ways to ensure India’s greater integration with the global supply chain, such as lowering logistics costs, encouraging much-needed research and development (R&D), and bolstering certain marketing support, to name a few.