FOREIGN TRADE POLICY 2015-2020

FOREIGN TRADE POLICY 2015-2020BY SAIRAMAKANTH(R590214017)RAJIV SRIDHAR(R590214013)

RITIKA PATEL(R590214014)ROHIT PATEL(R590214016)PRIYANK GHAROTE(R590214012)

UNVEILING THE FOREIGN TRADE POLICY 2015-2020The Foreign Trade Policy, 2015-20, is notified by Central Government, in exercise of powers conferred under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992) [FT (D&R) Act], as amended.Foreign trade policy 2015-2020 for manufacturing sectorFTP2015-20.introducestwo new schemes, namely Merchandise Exports from India Scheme (MEIS) for export of specified goods to specified markets & Services Exports from India Scheme (SEIS) for increasing exports of notified services, in place of a plethora of schemes earlier, with different conditions for eligibility and usage.Foreign trade policy 2015-2020 for manufacturing sectorMeasures have been adopted to nudge procurement of capital goods from indigenous manufacturers under the EPCG scheme by reducing specific export obligation to 75% of the normal export obligation.

This will promote the domestic capital goods manufacturing industry.

Such flexibilities will help exporters to develop their productive capacities for both local and global consumption.Foreign trade policy 2015-2020 for manufacturing sectorMeasures have been taken to give a boost to exports of defense and hi-tech items.

At the same time e-Commerce exports of handloom products, books/periodicals, leather footwear, toys and customized fashion garments through courier or foreign post office would also be able to get benefit of MEIS (for values upto 25,000 INR).BENEFITS TO MANUFACTURERS BY FTP 2015-2020Manufacturers, who are also status holders, will now be enabled to self certify their manufactured goods in phases, as originating from India with a view to qualifying for preferential treatment under various forms of bilateral and regional trade agreements.

This Approved Exporter System will help these manufacturer exporters considerably in getting fast access to international markets.BENEFITS TO MANUFACTURERS BY FTP 2015-2020 A number of steps have been taken for encouraging manufacturing and exports under 100% EOU/EHTP/STPI/BTP Schemes. The steps include a fast track clearance facility for these units, permitting them to share infrastructure facilities, permitting inter unit transfer of goods and services, permitting them to set up warehouses near the port of export and to use duty free equipment for training purposes.BENEFITS TO MANUFACTURERS BY FTP 2015-2020Considering the strategic significance of small and medium scale enterprise in the manufacturing sector and in employment generation, MSME clusters 108 have been identified for focused interventions to boost exports. Accordingly, Niryat Bandhu Scheme has been galvanized and repositioned to achieve the objectives of Skill India. Outreach activities will be organized in a structured way at these clusters with the help of EPCs and other willing Industry Partners and Knowledge Partners.COMMENTS ON FTP 2015-2020The Policy, though, seems to focus a lot on easing the processses but still exerts its clout on manufacturing in India.

The MEIS, for example, is a new scheme that is aimed and boosting exports but of specified goods to specified markets and SEIS is for increasing services exports of notified services.

The markets are yet not free and the government's new Policy is still trying to keep itself entrentched as a conduit between Indian exporters and their markets.

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