Study Material | Test Series
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
prelims Test Series 2019
बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Foreign Trade Policy 2015-2020 Unveiled
Apr 03, 2015

Keeping its focus on Make In India and Digital India initiatives, the Foreign Trade Policy (FTP) for 2015-2020 was unveiled. A significant highlight of the policy is that export obligation under the Export Promotion Capital Goods (EPCG) scheme is to be reduced by 25 per cent to promote domestic manufacturing.

At the same time, the Government aims to raise the country's exports to $900 billion by 2020, as the new FTP has also proposed setting up of a host of institutions, including Trade Council and National Committee on Trade Facilitation, to improve India's share in global trade and implement of WTO obligations. The new FTP will focus on defence, pharma, environment-friendly products and value-added exports.

Salient Features

  • FTP2015-20 introduces two new schemes, namely Merchandise Exports from India Scheme (MEIS) for export of specified goods to specified markets and Services Exports from India Scheme (SEIS) for increasing exports of notified services, in place of a plethora of schemes earlier, with different conditions for eligibility and usage.  There would be no conditionality attached to any scrips issued under these schemes.  

  • Duty credit scrips issued under MEIS and SEIS and the goods imported against these scrips are fully transferable. For grant of rewards under MEIS, the countries have been categorized into 3 Groups, whereas the rates of rewards under MEIS range from 2% to 5%. Under SEIS the selected Services would be rewarded at the rates of 3% and 5%.

  • Firms that export goods through courier or foreign post office using e-commerce of Freight on Board (FOB) value up to Rs. 25,000 per consignment will be entitled for rewards under MEIS. The objective of MEIS is to offset infra inefficiencies and associated costs involved in export of goods, which are manufactured in India and especially those having high export intensity, employment potential and can enhance India's export competitiveness.

  • SEIS will replace the earlier Served From India Scheme (SFIS). The new scheme will be applicable to 'service providers located in India', instead of 'Indian service providers'. Therefore SEIS provides for rewards to all service providers of notified services who are providing services from India, regardless of the constitution or profile of the service provider.

  • Measures have been adopted to nudge procurement of capital goods from indigenous manufacturers under the EPCG scheme by reducing specific export obligation to 75% of the normal export obligation. This will promote the domestic capital goods manufacturing industry.  Such flexibilities will help exporters to develop their productive capacities for both local and global consumption.  

  • Measures have been taken to give a boost to exports of defence and hi-tech items.

  • e-Commerce exports of handloom products, books/periodicals, leather footwear, toys and customized fashion garments through courier or foreign post office would also be able to get benefit of MEIS (for values up to Rs. 25,000).  

  • To give a boost to exports from SEZs, government has now decided to extend benefits of both the reward schemes (MEIS and SEIS) to units located in SEZs.  It is hoped that this measure will give a new impetus to development and growth of SEZs in the country.  

  • Trade facilitation and enhancing the ease of doing business are the other major focus areas in this new FTP.

  • One of the major objectives of new FTP is to move towards paperless working in 24x7 environment.  

  • A facility has been created to upload documents in exporter/importer profile and the exporters will not be required to submit documents repeatedly.  

  • Attention has also been paid to simplify various Import-Export Forms, bringing in clarity in different provisions, removing ambiguities and enhancing electronic governance.

  • Manufacturers, who are also status holders, will now be enabled to self-certify their manufactured goods in phases, as originating from India with a view to qualifying for preferential treatment under various forms of bilateral and regional trade agreements.  This Approved Exporter System will help these manufacturer exporters considerably in getting fast access to international markets.

  • A number of steps have been taken for encouraging manufacturing and exports under 100% EOU/EHTP/STPI/BTP Schemes.  The steps include a fast track clearance facility for these units, permitting them to share infrastructure facilities, permitting inter unit transfer of goods and services, permitting them to set up warehouses near the port of export and to use duty free equipment for training purposes.

  • Considering the strategic significance of small and medium scale enterprise in the manufacturing sector and in employment generation, MSME Clusters 108 have been identified for focused interventions to boost exports.

  • Niryat Bandhu Scheme has been galvanized and repositioned to achieve the objectives of Skill India.  Outreach activities will be organized in a structured way at these clusters with the help of EPCs and other willing ‘Industry Partners’ and ‘Knowledge Partners’.

  • The country aims at increasing its share in world exports from 2 per cent to 3.5 per cent by 2020. Pursuant to the WTO agreement on trade facilitation, the policy has proposed setting up National Committee on Trade Facilitation. That pact is aimed at easing customs procedure to reduce transactions cost for traders.

The release of Foreign Trade Policy was also accompanied by a FTP Statement explaining the vision, goals and objectives underpinning India's Foreign Trade Policy, laying down a roadmap for India’s global trade engagement in the coming years.  The FTP Statement describes the market and product strategy and measures required for trade promotion, infrastructure development and overall enhancement of the trade eco system. It seeks to enable India to respond to the challenges of the external environment, keeping in step with a rapidly evolving international trading architecture and make trade a major contributor to the country’s economic growth and development.

Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.