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New Foreign Trade Policy


  • Commerce and Industry Minister Nirmala Sitharaman unveiled the Prime Minister Narendra Modi-led government’s new Foreign Trade Policy (2015-2020).
  • The government’s new foreign trade policy (2014-19) to rev up exports is expected to be put in place by October-end and will have a strong thrust on manufacturing to bring it in sync with the Prime Minister Narendra Modi’s ‘Make in India’ goal.

Key Takeaways

  • Focus in Foreign Trade Policy is to support services and exports.
  • Have taken a number of very important initiatives.
  • Will focus on export of high value addition products.
  • Focussed on improving ease of doing business in new policy.
  • Challenge is to address infra bottlenecks, complex procedures, manufacturing.
  • Need to ensure local products and services are globally competitive.
  • Market diversification is a key focus of Foreign Trade Policy 2015-2020


[tii_spoiler title=”In Detail” open=”no” style=”default” icon=”plus” anchor=”” class=””]
  • India to be made a significant participant in world trade by 2020.
  • Merchandize exports from India (MEIS) to promote specific services for specific Markets Foreign Trade Policy.
  •  FTP would reduce export obligations by 25% and give boost to domestic manufacturing.FTP benefits from both MEIS & SEIS will be extended to units located in SEZs.
  • Agricultural and village industry products to be supported across the globe at rates of 3% and 5% under MEIS. Higher level of support to be provided to processed and packaged agricultural and food items under MEIS.
  • Industrial products to be supported in major markets at rates ranging from 2% to 3%.
  •  Served From India Scheme (SFIS) will be replaced with Service Export from India Scheme (SEIS).
  • Branding campaigns planned to promote exports in sectors where India has traditional Strength.
  • SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’.
  • Business services, hotel and restaurants to get rewards scrips under SEIS at 3% and other specified services at 5%.
  • Duty credit scrips to be freely transferable and usable for payment of customs duty, excise duty and service tax.
  • Debits against scrips would be eligible for CENVAT credit or drawback also.
  • Nomenclature of Export House, Star Export House, Trading House, Premier Trading House certificate changed to 1,2,3,4,5 Star Export House.
  • The criteria for export performance for recognition of status holder have been changed from Rupees to US dollar earnings.
  • Manufacturers who are also status holders will be enabled to self-certify their manufactured goods as originating from India.
  • Reduced Export Obligation (EO) (75%) for domestic procurement under EPCG scheme.
  • Online procedure to upload digitally signed document by Chartered Accountant/Company Secretary/Cost Accountant to be developed.
  • Inter-ministerial consultations to be held online for issue of various licences.
  • No need to repeatedly submit physical copies of documents available on Exporter Importer Profile.
  • Validity period of SCOMET export authorisation extended from present 12 months to 24 months.
  • Export obligation period for export items related to defence, military store, aerospace and nuclear energy to be 24 months instead of 18 months.
  • Calicut Airport, Kerala and Arakonam ICDS, Tamil Nadu notified as registered ports for import and export.
  • Vishakhapatnam and Bhimavarm added as Towns of Export Excellence.
  • Certificate from independent chartered engineer for redemption of EPCG authorisation no longer required.

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Just like an iris controls the light levels inside the eye making it possible for us to see the outside world, The Indian Iris aims at shedding light on the ongoing political affairs, policies and schemes of the Government of India (GOI) and those of the State Governments.

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