New Delhi: Aiming to nearly double India's exports of goods and services to USD 900 billion by 2020, the government on Wednesday announced several incentives in the five-year Foreign Trade Policy for exporters and units in the Special Economic Zones.
Unveiling the first trade policy of the NDA government, Commerce Minister Nirmala Sitharaman said the FTP (2015-20) will introduce Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) to boost outward shipments.
Besides, higher level of incentives will be provided for export of agriculture products under the Foreign Trade Policy (FTP), which seeks to integrate with Make In India and Digital India initiatives of the government.
"FTP lays down a roadmap for India's global trade engagement in the coming years...India (will become) a significant participant in world trade by 2020," Sitharaman said.
"The government aims to increase India's exports of merchandise and services from USD 465.9 billion in 2013-14 to approximately USD 900 billion by 2019-20 and to raise India's share in world exports from 2 percent to 3.5 per cent," Commerce Secretary Rajeev Kher said.
The FTP also seeks to establish an Export Promotion Mission to provide an institutional framework to work with State Governments to boost India's exports.
"Senior officials have been appointed as designated focal points for exports and imports in several Central Government departments," said a release on the FTP.
Unlike the annual reviews of the past, the FTP will be reviewed after two-and-half years to ensure continuity in the trade policy.
Following are the highlights of the Foreign Trade Policy 2015-20:
* Increase exports to USD 900 billion by 2019-20, from USD 466 billion in 2013-14
* Raise India's share in world exports from 2 percent to 3.5 percent
* Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) launched
* Higher level of rewards under MEIS for export items with High domestic content and value addition
* Chapter-3 incentives extended to units located in SEZs
* Export obligation under EPCG scheme reduced to 75 percent to Promote domestic capital goods manufacturing
* FTP to be aligned to Make in India, Digital India and Skills India initiatives
* Duty credit scrips made freely transferable and usable For payment of custom duty, excise duty and service tax
* Export promotion mission to take on board state governments
* Unlike annual reviews, FTP will be reviewed after two-and-half years
* Higher level of support for export of defence, farm Produce and eco-friendly products
