The Foreign Trade Policy (FTP) of India is a policy document that outlines the government’s strategies and objectives for India’s foreign trade. The FTP is revised every five years, with the current policy in force from 2015 to 2020. The main focus of the FTP 2015-2020 is to increase exports from India, to create employment opportunities, and to stimulate economic growth. The following are the highlights of the FTP 2015-2020:
- Merchandise Exports from India Scheme (MEIS): The MEIS is a major export promotion scheme that provides incentives to exporters. Under this scheme, the government provides duty credit scrips to eligible exporters, which can be used to pay customs duty on imported goods or can be sold in the market.
- Services Exports from India Scheme (SEIS): The SEIS is a scheme that provides incentives to service exporters. Under this scheme, eligible service exporters are given duty credit scrips that can be used to pay customs duty on imported goods or can be sold in the market.
- Export Promotion Capital Goods (EPCG) Scheme: The EPCG scheme is a scheme that allows import of capital goods at zero duty for export production. This scheme is aimed at promoting investment in the export sector.
- Special Economic Zones (SEZs): The government provides various incentives to units operating in SEZs, such as duty-free import of goods, exemption from central and state taxes, and exemption from service tax.
- Make in India: The Make in India initiative was launched to promote manufacturing in India and increase the share of manufacturing in GDP. The initiative aims to create jobs, promote innovation, and attract investment in the manufacturing sector.
- Digital India: The Digital India initiative was launched to promote the use of technology in various sectors, including trade. The initiative aims to provide a digital infrastructure that enables seamless flow of goods, services, and information.
- Trade Facilitation Measures: The FTP 2015-2020 aims to simplify procedures and reduce transaction costs for exporters and importers. The government has introduced various measures such as e-BRC (Electronic Bank Realisation Certificate) and e-SANCHIT (Single Window Interface for Facilitating Trade).
Overall, the FTP 2015-2020 is aimed at promoting exports, enhancing competitiveness, and creating a conducive environment for trade and investment in India. The government has taken various measures to simplify procedures, reduce transaction costs, and provide incentives to exporters and importers to boost trade.