Foreign trade regulation is one of every nation’s key policies, as it encompasses multifold priorities such as sectoral development, economic promotion, political relations, etc. In India, there is a law known as foreign trade strategy to make regulations. The length of the plan is usually five years, but it is updated periodically. It is one of the long term policies such as economic plans for five years. Foreign trade policy statement outlines the pre-determined vision, objectives and goals of pinning foreign trade. 2015-2020, the current foreign trade policy
Key Highlights of New forgien trade policy
1.In line with the’ Make in India ‘ programme, FTP 2015-20 provides a framework for growing exports of goods and services as well as job creation and growing added value in the country.
2.The policy aims to enable India to respond to the external environment challenges by keeping pace with a rapidly evolving international trading architecture and making trade a major contributor to the economic growth and development of the country.
3. FTP 2015-20 implements two new schemes, namely’ Merchandise Exports from India Scheme (MEIS)’ for exporting specified goods to specified markets and’ Services Exports from India Scheme (SEIS).’
4.Duty credit scripts issued under MEIS and SEIS and goods imported against these scripts can be transferred in full.
5.The countries were classified into 3 groups for the grant of rewards under MEIS, whereas the rates of rewards under MEIS ranged from 2% to 5%. Under SEIS, the Services selected would be rewarded at 3% and 5% rates.
6.Steps to nudge indigenous manufacturers ‘ procurement of capital goods under the EPCG scheme have been introduced by increasing the unique export obligation to 75% of the usual export obligation.
7.Measures to improve sales of security and hi-tech products have been taken.
8.In addition, e-commerce exports of handloom goods, books / periodicals, leather shoes, toys and personalized fashion clothing through courier or international post office may benefit from MEIS (up to INR 25,000).
9. In order to qualify for preferential treatment under various forms of bilateral and regional trade agreements, manufacturers, who are also status holders, will now be able to self-certify their manufactured goods in phases as originating from India. This’ Approved Export System’ will help exporters from manufacturers to gain rapid access to international markets significantly.
10.Many steps have been taken to promote production and exports under EOU / EHTP / STPI / BTP schemes of 100 percent. The measures include a quick-track clearance facility for these units, enabling them to share infrastructure facilities, allowing inter-unit transfers of goods and services, allowing them to set up warehouses near the export port, and using duty-free equipment for training purposes.
9.108 Clusters of MSMEs are established for focused export boosting interventions.’ Niryat Bandhu Project’ has therefore been galvanized and repositioned to meet’ Technical India ‘ objectives.
10.The other major focus areas in this latest FTP are trade facilitation and enhancing business-friendliness. One of the new FTP’s main goals is to push towards 24×7 paperless work.