The Foreign Trade Policy (FTP) 2015–2020 was introduced by the Government of India with the objective of increasing India’s participation in global trade and making exports a key driver of economic growth. The policy replaced the earlier FTP 2009–2014 and came into effect from April 1, 2015.
Background and Rationale of FTP 2015–2020
Before 2015, India followed multiple export promotion schemes, each with different rules and procedures. This created complexity, compliance burden, and delays for exporters. Global trade was also facing challenges due to slow economic growth and rising competition.
The FTP 2015–2020 was designed to address these issues by simplifying incentive schemes, improving ease of doing business, encouraging value-added exports, and supporting the “Make in India” initiative. The policy aimed to create a stable and predictable trade environment to help Indian exporters compete globally.
Vision and Objectives of FTP 2015–2020
The vision of FTP 2015–2020 was to make India a significant participant in global trade by enhancing export competitiveness and integrating Indian businesses into global value chains. The long-term goal was to increase India’s share in global exports and to generate employment through trade-led growth.
The key objectives of the policy included:
- Increasing exports of goods and services
- Promoting value-added and technology-intensive exports
- Simplifying procedures and reducing transaction costs
- Improving ease of doing business
- Supporting domestic manufacturing under Make in India
Introduction of MEIS and SEIS
One of the most important features of FTP 2015–2020 was the introduction of two new incentive schemes by merging multiple earlier schemes.
The Merchandise Exports from India Scheme (MEIS) replaced earlier schemes such as Focus Product Scheme, Focus Market Scheme, and Market Linked Focus Product Scheme. Under MEIS, exporters were rewarded with duty credit scrips for exporting notified goods to specified markets. These scrips could be used to pay customs duty, excise duty, and service tax, or could be freely transferred.
The Service Exports from India Scheme (SEIS) replaced the Served from India Scheme (SFIS). SEIS provided incentives to service providers based on net foreign exchange earned. The focus was on encouraging exports of services such as IT, healthcare, education, tourism, and professional services.
These schemes simplified the incentive structure and made it easier for exporters and banks to understand and implement export benefits.
Focus on Ease of Doing Business and Digitalisation
FTP 2015–2020 placed strong emphasis on reducing procedural delays and improving transparency. A major step was the introduction of online filing and paperless trade processes.
Exporters could apply for licenses, incentives, and authorisations through the Directorate General of Foreign Trade (DGFT) online portal. Digital signatures and electronic documents reduced physical interaction and processing time. For banks, this improved verification of export documents and faster credit of incentives.
The policy also introduced self-certification in certain areas, reducing dependence on multiple inspections and approvals.
Export Promotion of Capital Goods (EPCG) Scheme
The EPCG scheme continued under FTP 2015–2020 with simplified provisions. The scheme allowed exporters to import capital goods at zero or concessional customs duty, subject to an export obligation.
The objective was to encourage technological upgradation and improve productivity. Export obligation periods were rationalised, and procedural requirements were simplified. This was especially beneficial for manufacturing exporters and MSMEs.
Special Focus on MSMEs and Labour-Intensive Sectors
The policy recognised the importance of Micro, Small, and Medium Enterprises (MSMEs) in export growth and employment generation. Special incentives and simplified procedures were provided to MSME exporters.
Labour-intensive sectors such as textiles, leather, handicrafts, gems and jewellery, and agriculture-based products received special attention. Higher incentive rates under MEIS were provided for select products and markets to support employment-intensive industries.
Trade Facilitation Measures
FTP 2015–2020 introduced several trade facilitation measures to reduce transaction costs and improve efficiency. The concept of “Approved Exporter” status was promoted to enable trusted exporters to self-certify origin of goods.
The policy also aligned India’s trade procedures with global standards, such as the World Trade Organization’s Trade Facilitation Agreement (TFA). Faster customs clearance, risk-based inspections, and better coordination among trade-related agencies were encouraged.
Role of Banks under FTP 2015–2020
Banks played a crucial role in implementing the FTP. They provided pre-shipment and post-shipment credit, issued bank guarantees, and handled foreign exchange transactions related to exports and imports.
Duty credit scrips issued under MEIS and SEIS were transferable and could be financed or discounted by banks. Banks were also responsible for e-BRC (electronic Bank Realisation Certificate) generation, which was mandatory for claiming export incentives.
Mid-Term Review and Policy Extensions
The FTP 2015–2020 included provisions for periodic review to address emerging trade challenges. Certain incentive rates and product coverage were revised during the policy period to respond to global market conditions.
Although the policy period officially ended in 2020, several provisions were extended due to global disruptions and the need for continuity in export incentives until a new policy framework was introduced.
Impact of FTP 2015–2020
FTP 2015–2020 helped simplify India’s export incentive structure and improved ease of doing business. Digitalisation reduced delays and improved transparency. Exporters benefited from stable incentives, while banks experienced smoother documentation and compliance processes.
The policy strengthened India’s export ecosystem, supported manufacturing and services exports, and aligned trade policy with broader economic initiatives such as Make in India and Digital India.