Foreign Trade Policy 2015-20 and Key Measures – UPSC Economy Notes

Objective: The Foreign Trade Policy (FTP) 2015-20, along with its mid-term review in 2017, was implemented to enhance India’s exports. It aligns with broader initiatives such as Make in India, Digital India, Skill India, Start-up India, and Ease of Doing Business.

Key Measures:

1. Framework for Export Promotion:
   • FTP 2015-20 provides a comprehensive framework to increase exports of goods and services, generate employment, and promote value addition in the country.
   • Aligns with national initiatives to strengthen the Indian economy.
2. Response to External Challenges:
   • Aims to enable India to respond effectively to challenges in the rapidly evolving international trading architecture.
3. Export Promotion Schemes:
   • Introduces schemes and incentives to promote exports and provides duty remission/exemption on inputs for export production.
4. New Schemes Introduced:
   • Merchandise Exports from India Scheme (MEIS):
     • Focuses on improving the export of specified goods by consolidating earlier schemes for better coherence.
   • Services Exports from India Scheme (SEIS):
     • Aims to boost the export of notified services.
5. Niryat Bandhu Scheme:
   • Galvanized and repositioned to align with Skill India and trade promotion objectives.
   • Originally introduced in 2011 for first-generation entrepreneurs in international business enterprises.
   • Involves mentorship by Niryat Bandhu officers for individuals entering foreign trade.
6. Trade Facilitation and Ease of Doing Business:
   • Emphasizes trade facilitation and measures to enhance the ease of doing business.
   • Introduction of paperless work and ratification of the WTO Agreement on Trade Facilitation (TFA) in 2016.
7. Trade Infrastructure for Export Scheme (TIES):
   • Launched in 2017 to address export infrastructure gaps in the country.
   • Aims to enhance and strengthen the infrastructure supporting export activities.

These measures collectively contribute to creating a conducive environment for exporters, fostering economic growth, and enhancing India’s presence in the global trade arena. The policy reflects a commitment to aligning trade initiatives with broader national development goals.

FAQs

Q: What is the Foreign Trade Policy 2015-20?

The Foreign Trade Policy (FTP) 2015-20 is a comprehensive policy framework formulated by the Government of India to promote trade and enhance the country’s exports. It outlines various measures and incentives to facilitate foreign trade operations.

Q: What are the key objectives of the Foreign Trade Policy 2015-20?

The primary objectives of the Foreign Trade Policy 2015-20 are:

• Boosting India’s exports to strengthen its position in the global market.
• Promoting trade diversification and enhancing competitiveness.
• Facilitating ease of doing business for exporters and importers.
• Encouraging foreign investment inflow and fostering economic growth.
• Introducing measures for sustainable development and inclusive growth.

Q: What are some of the key measures introduced under the Foreign Trade Policy 2015-20?

Key measures under the FTP 2015-20 include:

• Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) to provide exporters with financial incentives.
• Focus Product Scheme (FPS) and Market Linked Focus Product Scheme (MLFPS) to incentivize exports of specific products to designated markets.
• Export Promotion Capital Goods (EPCG) scheme to facilitate import of capital goods for pre-production, production, and post-production at zero or concessional customs duty.
• Advance Authorization Scheme for duty-free import of inputs for export production.
• Simplification and digitization of export-import procedures through initiatives like Single Window Interface for Facilitating Trade (SWIFT) and Electronic Data Interchange (EDI).

Q: How does the Foreign Trade Policy 2015-20 contribute to promoting sustainable development?

The FTP 2015-20 emphasizes sustainable development by encouraging exports of eco-friendly and renewable energy products through various incentives and schemes. It also promotes trade in goods and services that comply with international environmental standards and norms.

Q: How does the Foreign Trade Policy 2015-20 address challenges faced by small and medium-sized enterprises (SMEs) in international trade?

The FTP 2015-20 includes measures specifically aimed at supporting SMEs, such as simplifying export procedures, providing easier access to credit and finance, offering export incentives through schemes like MEIS and SEIS, and facilitating participation in international trade fairs and exhibitions through financial assistance. These initiatives aim to enhance the competitiveness of SMEs in the global market and integrate them into the global value chain.

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