Question : NEW FOREIGN TRADE POLICY .

(a) whether the Government has announced the New Foreign Trade Policy (FTP) for 2015-2020 and if so, the salient features thereof indicating the sector-wise export target fixed in the policy;

(b) whether the Government has merged existing schemes into two schemes namely `Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS)` for goods and services and proposes to expand `Towns of Export Excellence` and if so, the details thereof along with the reasons therefor;

(c) whether the trade policies are being aligned with the Government`s key programmes like Make in India and Digital India in the policy to boost manufacturing and if so, the details thereof;

(d) the incentives and subsidies being offered to indigenous traders to compete with foreign traders in the policy; and

(e) the road map drawn up in the policy to boost country`s export to achieve the target fixed, improve ease of doing business, simplify trade transactions, provide breathing space to SEZs and to reduce the trade deficit with various countries including China?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a& b) : The Government of India has announced a new Foreign Trade Policy for the period 2015-2020 on 1st April, 2015. Details of the Foreign Trade Policy 2015-2020 are available at the website of the Directorate General of Foreign Trade at http://[email protected].

Earlier there were 5 different schemes for rewarding merchandise exports with different kinds of duty scrips with varying conditions (sector specific or actual user only) attached to their use. Now all these schemes have been merged into a single scheme, namely Merchandise Export from India Scheme (MEIS) and there would be no conditionality attached to the scrips issued under the scheme. Further, e-Commerce exports of certain specified employment creating sectors, made through courier or foreign post offices, have been supported under MEIS.

Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS) which would be available to notified services.

Government has recognized two new towns, namely Visakhapatnam and Bhimavaram as`Towns of Export Excellence`.

The sector-wise export target have not been fixed in the Foreign Trade Policy: 2015-2020.

(c to e ): The road map adopted by the Government in the Foreign Trade Policy 2015-2020 to align it with ‘Make in India’ and ‘Digital India’ programmes and to ease the trade includes :

(i) Specific ExportObligationunderExport Promotion Capital Goods (EPCG) scheme, incasecapitalgoodsareprocured fromindigenous manufacturers, has been reduced to 75% of the normal export obligation. This may help indigenous manufacturingindustry of capitalgoods.

(ii) Under Merchandise Exports from India Scheme (MEIS), export items with high domestic content and value addition have generally been provided higher level of rewards.

(iii) All duty credit scrips issued under both the schemes and the goods imported against these scrips are fully transferable.

(iv) For reward schemes and duty exemption schemes, hard copies of applications and specified documents which were required to be submitted earlier have now been dispensed with.

(v) Landing documents of export consignment as proof for notified market, can now be digitally uploaded as specified.

(vi) There will be no need to submit copies of permanent records/ documents repeatedly with each application, once the same are uploaded in Exporter/Importer Profile.

(vii) For faster and paperless communication with various committees of DGFT, dedicated e-mail addresses have been provided for various Committees, e.g. Norms Committees, Exim Facilitation Committee etc.

To boost country’s exports and diversify the product basket as well markets, the countries of the world have been divided in three groups for MEIS rewards, with notified rates of rewards for various notified products having potential to boost India`s exports. It is hoped that the rewards to notified products for exports to these markets would help in increasing exports and thereby achieving export targets and reducing trade deficit.

In the new Foreign Trade Policy 2015-20, the benefits of reward schemes have been extended to SEZs as well, which would give a new impetus to the development and growth of SEZs.