With an aim to make India a significant partner in global trade by 2020, the government on Wednesday unveiled a new Foreign Trade Policy (FTP).
Talking about the new policy, which aims at boosting India's exports, Commerce Minister Nirmala Sitharaman said that PM Narendra Modi's pet projects, 'Make in India' and 'Digital India' will be integrated with the new Foreign Trade Policy.
The government is pitching India as a friendly destination for manufacturing and exporting goods, and the new policy is being seen as an important step towards realising that goal.
We take a look at some key features of the new Foreign Trade Policy:
> 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
> FTP 2015-20 introduces two new schemes, namely "Merchandise Exports from India Scheme (MEIS)" and "Services Exports from India Scheme (SEIS)". The 'Services Exports from India Scheme' (SEIS) is for increasing exports of notified services. These schemes (MEIS and SEIS) replace multiple schemes earlier in place, each with different conditions for eligibility and usage. Incentives (MEIS & SEIS) to be available for SEZs also. e-Commerce of handicrafts, handlooms, books etc., eligible for be ..
> 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 ununder 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.
