Why in news?
Foreign Trade Policy (FTP) 2015-2020 extended for one year till 31st March, 2021.
Nodal Ministry: Ministry of Commerce and Industry
Objectives of FTP 2015 – 20:
- To increase India’s merchandise and services exports from US$ 465. 9 billion in 2013-14 to US$ 900 billion by 2019-20.
- To increase India’s share in the world exports to 3.5 percent from the present figure of 2%.
- To ensure a stable and sustainable policy environment for promoting merchandise and services trade.
- Linking the rules, procedures, and incentives for the imports and exports with other government schemes like Make in India, Skill India, Digital India, etc. for the purpose of the export promotion.
- To diversify India’s export basket by ensuring that the different sectors of the Indian economy are able to achieve global competitiveness for export promotion.
- To improve India’s global trade engagement and expand its markets and improve its integration with major regions which will ultimately increase the demand for India’s exports. This would contribute to the Indian government’s flagship schemes such as the Make in India initiative, etc.
- To provide a regular appraisal mechanism for rationalizing the imports and reducing trade imbalances.
Salient features of the FTP 2015 – 20:
- The policy replaced all existing focus products and focus market schemes for goods with a single Merchandise Export from India Scheme. Under the scheme, incentives will be given for the export of specific goods to specific markets.
- For services, all schemes have been replaced by a Services Export from India Scheme, with a greater thrust on notified services.
- Duty credit scrips issued under MEIS and SEIS and the goods imported against these scrips are fully transferable and usable for payment of customs duty, excise duty, and service tax.
- Extended benefits of both incentive schemes for export of goods & services to units in Special Economic Zones (SEZs).
- Export obligation under Export Promotion Capital Goods (EPCG) scheme reduced to 75% to promote domestic capital goods manufacturing.