Current Foreign trade policy (FTP) extended till March ’22

According to Commerce Minister, Piyush Goyal, India’s foreign trade policy (FTP) will be extended for six months, till March 31, 2022.

Key Facts

• FTP was extended just before its previous extension which is ending on September 30, 2021.
• FTP for 2015-2020 highlights the basic contours for boosting exports with the aim of enhancing economic growth.

Background

Central government had extended the Foreign Trade Policy 2015-20 for one year (till March 31, 2021) on March 31, 2020. Later, it was extended till September 30, 2021.

About FTP

Under the FTP, government provides incentives for different schemes like Duty Free Import Authorisation (DFIA) and Export Promotion Capital Goods (EPCG). FTP (2015-20) was launched on April 1, 2015. It provides a framework of increasing exports of goods & services, generation of employment and increasing value addition in India. This policy is in line with schemes like Make in India, Skill India, Digital Indi, Start-up India as well as Ease of Doing Business initiatives. Its statement describes the market and product strategy. The policy seeks to enable India in responding to challenges of external environment and make trade a major contributor in its economic growth & development.

Features of FTP 2015-2020

• Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) were launched for increasing exports.
• Nomenclature for “Export House, Star Export House, Trading House, Premier Trading House” certificate changed to “1, 2, 3, 4, 5 Star Export House”
• Scrip of Duty credit was made freely transferable and usable for the payments of custom duty and service tax.
• Under it, Export promotion mission took on board the state governments.

Month: Current Affairs - September, 2021