India's Export Outlook and Policy Updates: What to Expect in FY25

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India's Export Outlook and Policy Updates: What to Expect in FY25

Team Finance Saathi

24/Jun/2024

Key Points:

DGFT and FIEO estimates suggest India's exports could reach US$ 890-910 billion in FY25.
Updates on crucial export policies like RoDTEP and the Interest Equalization Scheme.
Integration of SEZs into ICEGATE and resolutions for technical glitches in EDPMS.

India's export landscape for the fiscal year 2024-25 (FY25) presents a dynamic scenario with evolving policies and projections. The Directorate General of Foreign Trade (DGFT) and the Federation of Indian Export Organisations (FIEO) are actively gauging the potential for exports, estimating figures ranging from US$ 890 to 910 billion, building on the marginal increase seen in FY24.

The export sector is closely monitoring several policy developments that could shape its trajectory in the coming year. One of the pivotal schemes under review is the Remission of Duties and Taxes on Export Products (RoDTEP), designed to refund various taxes and levies incurred by exporters. Currently, efforts are underway to extend RoDTEP benefits to Special Economic Zones (SEZs) once integration into the Indian Customs Electronic Gateway (ICEGATE) is achieved. ICEGATE serves as the national portal for customs services, facilitating efficient electronic filing for trade participants.

Another critical policy under scrutiny is the Interest Equalization Scheme, which provides financial support to exporters through subsidized credit rates. The scheme's future hinges on government decisions regarding interest rates, which exporters are lobbying to restore to higher levels, citing recent changes in the repo rate by the Reserve Bank of India.

In addition to policy updates, challenges persist with the Export Data Processing and Monitoring System (EDPMS), a platform crucial for export transactions reporting by banks. Technical glitches have hindered operations, though resolutions are expected by July to streamline processes for exporters.

Looking ahead, the DGFT aims to enhance transparency and accessibility for exporters through the 'Trade Connect' e-platform. This initiative promises a comprehensive repository of export-related information, including market insights, regulatory updates, and trade finance services. The phased rollout of Trade Connect aims to empower Indian exporters with essential tools and resources to navigate global markets effectively.

As India strives to achieve its ambitious export target of US$ 2 trillion by 2030, these policy developments and initiatives are pivotal in shaping the resilience and competitiveness of its export sector. Stakeholders across industries are closely monitoring these updates, which are set to influence strategic decisions and operational efficiencies in the export landscape for FY25 and beyond.

Also Read : India's Advertising Market to Soar 11.8% in 2024, Driven by Robust Digital Media Growth

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India's Export Outlook and Policy Updates: What to Expect in FY25

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