India is developing an index to track exporter performance via their IECs over five years. DGFT Ajay Bhadoo said this data-driven tool will help diversify markets and boost exports, replacing subsidies with duty remission schemes like RoDTEP.
New Exporter Performance Index
India is working on creating an index to evaluate exporters performance based on their Importer Exporter Codes (IECs), tracking performance over a five-year period, Director General of Foreign Trade (DGFT) Ajay Bhadoo said on Wednesday, as the government sharpens its focus on data-driven export promotion and market diversification.
"Trying to create an index for exporters to evaluate IECs how they've fared over 5 years," Bhadoo said, adding that the data could be compiled over the next year to support the "acceleration of new market for diversification, bring more exporters."
Shift in Trade Policy Framework
Bhadoo reiterated that India has moved away from export subsidies under its New Trade Policy, aligning its trade framework with global rules. "Not subsidizing exports, FoB subsidy done away with under New Trade Policy," he said. Instead, the government is relying on duty remission mechanisms that ensure exports are not burdened with domestic taxes.
"Remission is fine to not export taxes on duty foregone basis," Bhadoo said, noting that reforms of Special Economic Zones are ongoing. "SEZ reforms underway," he added.
On trade frictions, Bhadoo said some policy measures should not be seen as direct responses to external actions. "AS 11 inventory under sport promotion mission not per se in response to US tariffs," he said. He also acknowledged structural limits in responding to higher global tariffs. "Tariff for over 50% cannot be countered," Bhadoo added.
Addressing Long-Term Exporter Challenges
The export promotion mission, according to him, is aimed at addressing deep-rooted challenges faced by exporters. "Export promotion mission trying to resolve long-term Disability that exporters were facing," he said.
Continued Support and Policy Tools
DGFT Bhadoo said the government continues to work on a broad set of policy tools to support exporters, including "other inventories, FTAs, Policy initiatives, preferential market access," as well as reimbursements through the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
"Reimbursement via RoDTEP, Advance authorisation scheme is continuing," he said. He added that the proposed exporter index could become a key instrument for policy calibration once sufficient data is available.
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