To address the infrastructural bottlenecks, complex procedures and manufacturing hurdles, the new trade policy announced two new schemes -- Merchandise Exports From India Scheme (MEIS) and Services Exports From India Scheme (SIES).
Aiming to nearly double India's exports of goods and services to USD 900 billion by 2020, the commerce ministry Wednesday announced its new Foreign Trade Policy (2015-2020). To address the infrastructural bottlenecks, complex procedures and manufacturing hurdles, the new trade policy announced two new schemes -- Merchandise Exports From India Scheme (MEIS) and Services Exports From India Scheme (SIES). Addressing the media, Commerce Minister Nirmala Sitharaman said the focus of foreign trade policy is to support services and exports along with improving the ease of doing business. “The new trade policy will boost exports, create jobs while supporting 'Make In India' and 'Digital India'… Will focus on defence, pharma, environment-friendly products and value-added exports.” The current WTO rules envisage phasing out of export subsidies eventually. We need to ensure local products and services are globally competitive, the minister said. Sitharaman said the export obligation under EPCG scheme will be reduced by 25 percent to promote domestic manufacturing, adding that the government will continue incentives for units located in special
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economic zones (SEZs). Stating that India is completely committed to WTO process, Commerce Secretary Rajeev Kher said the new trade policy includes the process of incentivisation. “India is not in a position to sign mega agreements. It is important to rationalise the country’s tariff structure with reference to intermediaries and be more competitive,” Kher said. The 5-year foreign trade policy will be reviewed after two-and-half years, he added. Ajay Sahai, Director General and CEO of Federation of Indian Exports Organisation (FIEO), said the new policy is a clear departure from the earlier seated foreign trade policy because here the government has recognized the emerging problems of the trade and has tried to address some of the important issues. “Let us recognize the fact that all factors of production are with the state and unless you integrate exports in your export strategy you won’t be able to succeed. So, this policy makes a beginning of that. Secondly the policy has recognised the new kind of exports which will be taking place and therefore it could focus on high technology exports, green technology exports, environment friendly exports and we are talking about the e-commerce which is going to the major player in India’s international trade in years to come. Thirdly that policy also talks about ease of doing business,” he said. This is not really a new policy but it is a major scaling down of the facilities that were being given to the exporters under the old policy, said Arun Goyal, trade expert & Director Academy of Business Studies. Calling it a classic case of old wine in new bottle, Goyal said the government has packaged the new policy very well by stating that they have announced two new schemes, MEIS and SEIS, which were already available. “So, all these schemes have been merged and they have been given it a new name. Thus, it is old and less wine in new bottle,” he said. M Rafeeque Ahmed, former President, FIEO thinks the new trade policy is quite encouraging and is a big step towards merchandise exports wherein manufacturing is given importance. “Unless the manufacturing gets importance in exports, the industry cannot grow. The new FTP will meet many things -- exports, manufacturing will go up and all allied industries will benefit. This will lead to job creation. I welcome this policy,” he said.
