Indian exporters have requested a transition period for the new foreign trade policy of at least three months, claiming this will allow them to fulfil their existing contracts under the prior policy.
The new foreign trade policy (FTP) was announced by the government on Friday after the previous five-year strategy for 2015-2020 was extended up to four times due to pandemic-related limitations and the ensuing global unrest. Until March 31, 2023, the most recent extension was given in September 2022.
Every time a significant change in the Foreign Trade Policy is announced, “FIEO has petitioned the government that a 3-6 months’ transition period may be allowed,” he continued.
An official document states that the new FTP “must enter into force” and include requirements relating to the export and import of goods and services. It will be in effect starting on April 1, 2023, unless specifically stated otherwise or modified.
The government said that, unless otherwise noted, “all exports and imports made up to 31 March 2023 shall, therefore, be governed by the applicable FTP.”
According to Ajay Sahai, director general and chief executive of FIEO, the implementation of a contract typically takes three to six months.
Current orders shouldn’t be impacted, but there is some concern because the new policy has no expiration date. So, we have requested a transitional time. The implementation of present contracts typically takes three to six months, and tomorrow’s withdrawal could cause issues, according to Sahai
