Page 1 of 8
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 01
January 2019
Available online: https://ejbss.org/ P a g e | 19
Current Highlights of Foreign Trade Policy (2015-2020)
Preeti Chhillar
Extension Lecturer (Commerce)
Govt College Gohana
preeti.dahiya02@gmail.com
Abstract: The BJP-led National Democratic Alliance (NDA) Government announced its first
new five years Foreign Trade Policy (FTP), 2015-20 on 1st April, 2015 replacing the earlier
policy (2009-14). The new five year FTP (2015-20) provides a framework for to the exporters
and units in Special Economic Zones (SEZ) for increasing exports of goods and services as well
as generation of employment and increasing value addition in the country, in keeping with the
“Make in India” vision of Prime Minister. The New Foreign Trade policy (FTP, 2015-20) link
rules, procedures and incentives for exports and imports with other initiatives such as “make in
India”, “Digital India”, and “Skills India”. It consolidates five different incentive schemes under
the earlier policy for rewarding merchandise exports into a single scheme, namely, the
Merchandise Exports from India scheme (MEIS). In the service sector, the service Exports from
India Scheme (SEIS) has been introduced replacing the served from India Scheme. The main
focus of the new policy is to support both the manufacturing and services sectors, with a special
emphasis on improving the ‘ease of doing businesses. While unveiling the policy, the Minister of
Commerce and Industry Mrs. Nirmala Sitharaman stated that there were various processes
shaping India and its equation with the rest of the world. She urged the Government and industry
to work in tandem to deal with the challenges posed. She expressed hope that this policy will
show India the dimension of global trade so that India can increase its presence in the
international market. They also expressed hope that FTP lays down a roadmap for India’s global
trade engagement in the coming years. India will become a significant participant in the World
Trade by 2020.
Page 2 of 8
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 01
January 2019
Available online: https://ejbss.org/ P a g e | 20
Keywords: Foreign Trade Policy, Goods, Services, Industry, Commerce, Global.
Important Policy Objectives and Issues:
The following are some of the important policy objectives and issues incorporated in the new
FTP (2015-20) :
1. The policy aims to increase India’s exports of merchandise and services from USD 465.9
billion in 2013-14 to approximately USD 900 billion by 2019-20.
2. To raise India’s share would export from 2 per cent to 3.5 per cent.
3. The FTP seeks to establish an Export Promotion Mission to provide an institutional
framework to work with State Governments to boost India’s exports.
4. Additional incentive would be provided towards exports of defence goods, agriculture
goods and eco-friendly, commodities and hi-tech items.
5. Introducing Merchandise Export from India Scheme (MEIS) and Services Exports from
India Scheme (SEIS) to boost outward shipments.
6. Providing additional benefits to those concerns who exports commodities on the basis of
indigenous raw materials under the above scheme.
7. To reduce the export bindings in respect of Special Economic Zones (SEZs) and to bring
SEZs under the above two schemes and to raise the importance of SEZs as investment
destination as an objective.
8. Implementing Foreign Trade Policy keeping in touch with ‘Make in India’, ‘Digital
India’ and ‘Skills India’.
9. To encourage e-commerce, the government will select those industries having a larger
scope of employment generation to encourage in raising their exports. This e-commerce
exports include handloom products, books and periodicals, leather footwear, toys and
customized fashion garments.
10. Unlike the annual reviews of the past, the FTP will be reviewed after two-and-half years
to ensure continuity in the trade policy.
Page 3 of 8
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 01
January 2019
Available online: https://ejbss.org/ P a g e | 21
FTP Statement: The release of new Foreign Trade Policy was also accompanied by of FTP
Statement, explaining the vision, goals and objectives underpinning India’s foreign trade policy,
laying down a road map for India’s global trade engagement in the coming years. The FTP
Statement clearly describes the market and product strategy and measures required for trade
promotion, infrastructure development and overall enhancement of the trade eco-system. The
statement seek, to enable India to respond to the challenges of the external environment, keeping
in steps with a rapidly evolving international trading architecture and make trade major
contributor to the country’s economic growth and development.
Measures Announced in the Policy:
FTP 2015-20 introduces two new schemes, namely “Merchandise Exports from India
Scheme (MEIS)” for raising exports of specified goods to specified markets and “Services
Exports from India Scheme (SEIS)” for increasing exports on notified services, in place of a
plethora of schemes introduced earlier, with different conditions for eligibility and usage.
Accordingly, there would be no conditionality attached to any scrips issued under these schemes.
Duty credit scrips issued under MEIS and SEIS and goods imported against these scrips are fully
transferable. For grants of rewards under MEIS, the countries have been categorized into three
groups, whereas the rates of rewards under MEIS range from 2 per cent to 5 per cent. Under
SEIS, the selected services would be rewarded at the rates of 3 per cent to 5 per cent.
Besides, measures have been adopted to nudge procurement of capital goods from
indigenous manufacturers under the EPCG scheme by reducing specific export obligation to 75
percent of the normal export obligation. This measure will definitely promote the domestic
capital goods manufacturing industry such flexibilities will help exporters to develop their
productive capacities for both local and global consumption. Measures have also been taken to
give a boost to exports of defence and hi-tech items. At the same time, e-commerce exports of
handloom products, books and periodicals, leather footwear, toys and customized fashion
garments through courier or foreign post office would also be able so get benefit of MEIS (for
values up to 25,000). These measures would not only capitalize on India’s strength in these
areas and increase exports and also provide employment for its people.
