NITI GYAAN

Problem Statement

“POLICY DRAFTING”

 
 
 
 
TEAM- VMATES

Varsha Singh- 21100128

Hardik Gupta– 2110088 
Shivani Sinha- 2110118 

Date- Feb 22, 2022

 Foreign Trade Policy

The Foreign trade policy 2015-20 was proposed on April 1, 2015, by minister of state of
Commerce and Industry Nirmala Sitharaman. The. FTP mainly focuses on increasing exports
from India and leveraging the “Make in India” program by Government of India (GoI) along
with vision to create employment. The policy aims at increasing the trade in India thus
increasing the sector contribution in the stagnant GDP. Its vision is to increase exports to
$900 billion by 2020.

Some of the highlights of Foreign Trade Policy 2015-20 are-

1) Foreign Trade Policy 2015-20 came up with two new schemes namely
“Merchandise Exports from India Scheme” (MEIS) and “Service Exports from
India Scheme” (SEIS).
2) Under MEIS the rewards would range from 2% to 5% depending on the assigned
category and in SEIS they would range from 3% to 5%
3) The emphasis will be on the procurement on capital good from Indigenous
manufacturers under EPCG policy.
4) E-commerce exports from handloom, books, leather, footwear, toys, and
customized garments will get benefit under MEIS scheme.
5) Status holders will be able to self-certify their manufacturing goods a originating
from India thus gaining certain benefits.
6) The FTP also emphasis and encourage paper less works adding to “Digital India”
scheme.
7) 108 MSME are identified to boost the exports.
8) FTP also supports exports from defense, farm products and eco-friendly products.

Though FTP has addressed many of the concerns that were not touched upon in the previous
Foreign Trade Policy. But still some of the sectors and concerns remain untouched and needs
to be addressed

Some of the recommendations we would like to put forward are-

1) Leap forward in Comprehensive Economic Partnership Agreement-

An economic agreement was signed between Japan and India in 2016, this
basically emphasized on eliminating tariffs from trade of various items like
automobile parts between Indian and Japan. We firstly recommend
incorporating more such agreements in the FTP, also the current agreement
scheme should be taken forward as Japan has showed a huge interest in Indian
manufacturing industry and even supported in DMIC project. Thus, India
should increase the number of tariff free items covered in recent agreement.
2) Focus on Export of R&D Services-
The government of India should also bring in some required effects in the
R&D sector of India, as this is a booming sector and has the capabilities to
uplift manufacturing sector and strengthening our exports. The government
should try to bring in more resources and foreign investment in the sector
while allowing relaxations.

3) Focus on MSME-
The government should also focus more on how to uplift the MSME’s. One of
the major concerns with them is of the financing as banks are not willing to
provide them with debt. Thus, government should focus on this issue and
encourage them more to contribute towards exports and foreign trade.

4) Development of Infrastructure-
One of the major factors that leads to loss of trade for India is lack of proper
infrastructure. Japan had recently contributed to DMIC project, now the
Government should try to spot more such opportunities. This will help in two
ways, firstly it will strengthen ties between countries thus increasing trade
between them. Secondly, since there is huge capital investment in such
development projects thus it would help India to develop infrastructure as well
which would be beneficial for trade even with other countries.

THANK YOU