Those who can smartly use the range of resources available, stand to benefit more from foreign trade and help India achieve its dream of being an export-driven economy.
The Government of India has taken quite a few steps towards enhancing Indian exports by introducing several export benefit schemes. The main objective of these export benefit schemes is to simplify the entire export process and make it easier.
The process of exports is viewed as a complex affair, some businesses may invest a significant effort in figuring out how to navigate through it, others may choose to stay away.
One thing to always keep in mind is that the challenge in exports never lies in its volume, but in its structure.
For cross-border transactions, unless specifically mentioned the default POS for services is the location of the recipient of service i.e. outside India.
If compliances in terms of current taxation policy of the Government and do’s and don’ts for availing the benefits are not adhered to, it may lead to difficulty in exports or denial of precious export incentives.
The Foreign Trade Policy 2015-20 has ensured that everything becomes more seamless and interconnected. The result has been a system which has had a trickle down effect on domestic businesses as well, in addition to exports says Mahavir Pratap Sharma, Chairman, Carpet Export Promotion Council. Watch
Exporting the product is the next step with refunds on duty drawbacks and GST coming through - all these steps helped in bringing seamlessness and functionality for the industry.
In the textile sector, competition is growing tremendously, but a lot of Indian entrepreneurs are entering into the field and they are still finding success.