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Foreign Trade Policy

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15 views

Foreign Trade Policy

Uploaded by

Madhumitha
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Foreign Trade Policy

The Foreign Trade Policy 2015-20 determines our country’s foreign policies concerning commerce, business,
and trade. It was published by the government as a means to boost India’s participation in global trade by improving
our export and import services. The policy also focused on bettering our employment opportunities and aims to
improve the country’s economic standing. Besides, it also came out with a lot of policies that were in line with the
‘Make in India’ initiative which was previously launched by the then Prime Minister of India.

Growth of Trade in India

The last two decades have seen an exponential rise in trade within the country, with the domestic economy
growing in leaps and bounds. This growth has helped the Indian domestic economy grow to INR 153 trillion from INR
32 trillion in 2004 (Source: India Brand Equity Foundation). This has also led to an increase in the average per capita
income of workers within the country. This, in turn, has also helped in growing the overall GDP of the country, thanks
to unprecedented growth in the external trade sector of India. The Foreign Trade Policy of 2015-20 aims to further this
growth and make India a super-player in international trade by the end of 2020. The objective is to promote the export
and import of goods and services, and also wants to make it easier for manufacturers to access hidden and untapped
markets. Through this policy, the government is trying to provide security, support, and technical help to the
manufacturing sectors, to facilitate ease of doing business.

Key Highlights

The FTP helps to increase our export capabilities and through that aims to improve employment generation and
value addition within the country via the ‘Make in India’ programme.
It also aims to improve our country’s response to external challenges and changes in the economic
environment, allowing for the rapidly evolving trading architecture.
The Policy had also brought in two new schemes, named Merchandise Exports from India and ‘Services
Exports from India Scheme for improving our export capabilities.
Also, as per these schemes, any goods which have duty credit scrips issued against them, maybe fully
transferred.
Under the MEIS, countries have been split into 3 groups to provide rewards between 2 and 5%, while under
SEIS, rewards range between 3% and 5%.
The policy, through the EPCG scheme, has also made it possible to acquire goods from indigenous
manufacturers.
Furthermore, the policy has made it possible to boost exports for defence and hi-tech fields.
Exports such as handloom items, books, leather items, fashion items and toys that are sent via post are eligible
to get MEIS benefits up to INR 25,000.
Manufacturers who can produce goods in phases within the country will also now get preferential treatment
under various agreements, helping such manufacturers get easy access to untapped international markets.
The policy has also made arrangements for a fast track clearance facility for products that allow the assurance
of quality products. The same policy also allows for the setting up of warehouses near ports and the
availability of duty-free equipment for training.
To boost exports, over 108 MSME clusters have been founded.
The Niryat Bandhu Scheme’ has been established to promote the ‘Skill India’ campaign.
Also, the FTP focuses on creating a paperless environment in the years to come.

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