New & simplified foreign trade policy for 2015-20, which aims to double exports in next 5 years, seems a positive step for the exporters with many positive steps like it collapses five earlier schemes for promotion of merchandise goods into one single programme. While giving a boost to the Make in India initiative it seeks US $ 900 billion by 2019-20. Industry welcomed the policy that has been delayed by a year. It focuses on reducing transaction costs for exports besides extending incentives to Special Economic Zones (SEZs) and e-commerce. Announcing the FTP, Commerce and Industry Minister Nirmala Sitharaman said, “The focus of the foreign trade policy is to support services and exports along with improving the ease of doing business. The new trade policy will boost exports and create jobs while supporting Make in India and Digital India. The Government aims to raise India’s share in world exports from 2 per cent to 3.5 per cent by 2020.”
E-commerce-enabled exports of handloom products and customized fashion garments through couriers or foreign post offices will also get the benefit of Merchandise Export from India Scheme (MEIS) for a value of up to Rs. 25,000. Several promotional schemes such as focus product and focus market schemes for goods have been consolidated into a single MEIS. Under the scheme, incentives will be given for export of specific goods to specific markets. Incentives under MEIS and SEIS will be in the form of fully transferable duty credit scrips. Exporters can use these scrips to offset service tax, excise duty or customs duty. This addresses the long-pending demand of the service sector as many sectors do not import and were not able to use the incentives. In an effort to revive floundering special economic zones, the Government extended export incentive schemes for both goods and services to units in SEZs as well. It also reduced the export obligation for those procuring capital goods domestically to 4.5 times imports as against six times under the Export Promotion of Capital Goods scheme (EPCG), which will encourage the domestic capital goods industry. Nomenclature of Export House, Star Export House, Trading House, Premier Trading House certificate changed to 1,2,3,4, and 5 Star Export House.
