INDIA’S

FOREIGN
TRADE
POLICY
2015-2020*

Presented By: Group 4

Aarushi Rawat | Prateek Singh | Deepak Kumar
 Contents
• Overview: FTP
• India’s FTP 2015-20 :
 Vision & Mission
 Objectives
 Way Forward
 Key Highlights
• India’s Trade Performance (2015-2019)
• Strategies Implemented
• Strategy Highlights
 Product Strategy
 Service Sector Strategy
 Trade Promotion & Infrastructure
 Trade Ecosystem
• Conclusion
1. India’s Foreign Trade Policy (FTP) : Overview

• Provides framework of rules, procedures & guidelines in matters for

import and export.
• Formulated 5yrs at a time.
• The latest was 2015-20 FTP, now extended till March ’21 .
• FTP 🔗 with domestic economic policy – Impact of Globalisation.
• Initiatives to re-energise economy: Make in India, Skill India, Startup
India etc.
 Vision & Mission

• Significant participation and leadership position in World

Trade.

• Build Robust trade & Market Diversification model.

• Improve and boost exports:

 Strengthen Standards
 Non-Tarriff Measures
 Branding
 Simplification of procedures/digitization
 Mainstreaming state

• Maintaining compliance with international obligations

 Objectives

• To provide a stable and sustainable policy environment for

growth of foreign trade in merchandise and services and
creation of employment;
• To create an ‘Export Promotion Mission’ for India;
• To promote the diversification of India’s export basket to
gain global competitiveness
• To create an architecture for India’s global trade
engagement, thereby increasing demand - contributing to
‘Make in India’ initiative;
• To provide a mechanism for regular appraisal in order to
rationalise imports and reduce the trade imbalance.
 Key Highlights

• Aims to double India’s exports to $900 billion by 2020.

• The incentive for exports and SEZ will be continued /
rationalized.
• Merchandise Export from India Scheme (MEIS) and Service
Exports from India Scheme (SEIS) launched. 
• Export obligation under EPCG scheme reduced to 75% 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.
• Business leaders to be recognized as “Status Holders” and
given special treatment and privileges to facilitate their trade
transactions.  
• Trade facilitation and ease of doing business initiatives
• Export promotion mission to take on board state
Governments.
• Higher level of support for export of defence, farm Produce
and eco-friendly products
2. India’s Trade Performance (2015-19)
• Registered secular growth in 3 FYs 2015-18.

• Major downturn in the face of the global slowdown in the year 2018-19.

• Reached USD 330.07 Billion, the highest ever, surpassing the earlier peak of USD 314.4
Billion (2013-14} in a challenging global environment.

• The following growth drivers have shaped merchandise exports growth:

 Engineering Goods : +6.36%.
 Petroleum Products: +28%.
 Organic & Inorganic Chemicals: +21.97%.
 Drugs & Pharmaceuticals: +11.03%.
 Cotton Yarn/Fabs./made-ups, Handloom Products etc.: +9.22%.
 Electronic Goods: +38.91%.
 Plastic & Linoleum: +25.66%.
Strategies Implemented
PRODUCT STRATEGY

• In order to raise India’s share in world exports, it is essential to focus efforts on those sectors where
India already has strengths as well as those which have untapped potential.

• A Strategy Paper prepared by the Department of Commerce in 2010 to identified those sectors.

 Some of the promising product areas are discussed below.

1. Engineering Exports.
2. Electronics.
3. Pharmaceuticals.
4. Leather products and textiles.
5. Gems & Jewellery Sector.
6. Agricultural Products.
Import showing negative growth in April 2020
 PRODUCT STRATEGY Cont.

 Engineering Exports.
• A Strategy Paper commissioned by EEPC India for the growth of Indian engineering exports in 2014-19.

• India’s share in global engineering trade is around 1.2 percent whereas China’s share is around 12.3
percent.

 Government along with EEPC and allied industry bodies has embarked on a three pronged strategy.

1. Promote Technology initiatives for the SMEs by creating awareness.

2. stress on quality and standardization of engineering products with the help ‘QCI’ and ‘NABCB’

3. promote the Brand “India Engineering” globally.

 PRODUCT STRATEGY Cont.
 Leather products and textiles - { focus sector under ‘Make in India’ programme }

• Development of standards for footwear and accessories

• Enhancement of skills of designers
• Encourage production of accessories and components for reducing dependency on imports.
• Supporting skill development leading to job creation and focused marketing efforts.
• Greater focus on finished and composite products and additional attention to garments, non-leather
products.
• Improving competitiveness through supporting environmental compliance expenses and other capital
expenses.

 Agricultural Products.

• Framing policies for the export of agricultural products involves consultations and consensus building
with several stakeholders including various Central Ministries, State Governments other organizations.

• Important considerations :- The stocks available in the country, food security concerns , some others also.
THE SERVICE SECTOR – AN AREA OF GREAT POTENTIAL

• Services remains the key driver of India’s

Economic growth.

• Services export have been a dynamic element of

India’s trade & globalization in recent years.

• Acc. To WTO Data, India’s services export grew

from USD 16.8 billion in 2001 to USD 155.6
billion 2014 which constitute the 7.5 % of the
GDP.

• The single most important contributor to India’s

service exports is the IT/ITES sector .

• The decline in exports has been mainly -due to

the ongoing global slowdown ( Covid-19 crisis).
INDIA’S FOREIGN TRADE: April 2020
THE SERVICE SECTOR – AN AREA OF GREAT POTENTIAL Cont.

 Challenges - { Market and policy related issue }

• Protectionist measures by our key trading partners.

• Domestic regulatory weaknesses limiting the capacity of domestic service suppliers to provide services.

• Supply side factors include a ‘talent gap’ and infrastructural constraints.

• Lack of Standards in Services

 Ongoing / future Initiative

• Champion Services Sectors.

• Global Exhibition on Services.

• Advantage Health Care India.

• Financial assistance for export of services.

 Seizing opportunity from enhanced participation in global economy

 Labour-intensive exports are lagging

behind.

 Addressing domestic structural

bottlenecks is key to supporting India’s
competitiveness.

 Further reduction in trade barriers

would boost manufacturing exports and
jobs and improve living standards.

 Restrictions to services trade imposed

both by trading partners on India’s exports
and by India on its imports are high.