The much awaited Foreign Trade Policy 2015-20 was announced by
the government with the objective of making India an influential
partner in the global trade arena by boosting the export of goods
and services. This policy also focuses on generating employment and
raising value addition in India, which is in line with the
'Make in India' initiative launched by Indian
Prime Minister Narendra Modi.
The key highlights of the Foreign Trade Policy 2015-20 are:
Goods - Earlier
there were 5 different schemes (Focus Product Scheme, Market
Linked Focus Product Scheme, Focus Market Scheme, Agri.
Infrastructure Incentive Scrip, VKGUY) for rewarding
merchandise exports with different kinds of duty scrips with
varying conditions attached to their use. Duty free scrips are
paper authorisations that allow the holder to import inputs which
are used to manufacture products that are exported, or to
manufacture machinery used for producing such goods, without paying
duty equivalent to the printed value of the scrip. For instance, a
duty free scrip valued at Rupees 1 lakh allows the holder to import
goods without paying duty of up to Rupees 1 lakh on the goods.
Under the new Foreign Trade Policy, all these schemes have been
merged into a single scheme, namely the Merchandise Export from
there is no conditionality attached to scrips issued under the
Services – The
Served From India Scheme has been replaced with the
Service Exports from India Scheme
("SEIS"). SEIS is
stated to apply to 'Service Providers located in India'
instead of 'Indian Service Providers'. Therefore, SEIS
rewards to all service providers of notified services, who are
providing services from India, regardless of the constitution or
profile of the service provider.
Zones - The policy outlines extended incentives for
Special Economic Zones in India.
Status Holders -
Business leaders who have excelled in international trade and have
successfully contributed to India's foreign trade are proposed
to be recognized as Status Holders and given special privileges to
facilitate their trade transactions, in order to reduce their
transaction costs and time.
Export Houses - The
nomenclature of Export House, Star Export House, Trading House,
Star Trading House, Premier Trading House certificate has been
simplified and changed to One, Two, Three, Four and Five Star
Resolving Complaints - In an effort
to resolve quality complaints and trade disputes between exporters
and importers, a new chapter on Quality Complaints and Trade
Disputes has been incorporated into the Foreign Trade Policy.
Originally published June 2015.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Developing Asia is facing considerable headwinds. Delayed recovery in major industrial economies and moderating prospects for the large economies of the China and India weigh on region's project growth forecasts.
The rapid growth of global economy has led to widespread international trade and this expansion in international trade has brought with it increasing possibilities of cross border insolvency proceedings.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).