Primary objective was to boost Indian exports alongside strengthening schemes like Make in India, Digital India, thereby focusing on manufacturing in India along with Ease of Doing business.
Key Features
♤ To increase India’s exports to US $ 900 billion by 2019-2020.
♤ FTP would reduce export obligations by 25% and give boost to domestic manufacturing.
♤ FTP benefits from both MEIS & SEIS will be extended to units located in SEZs.
♤ FTP 2015-20 introduced two new schemes:
o "Merchandise Exports from India Scheme (MEIS)" and "Services Exports from India Scheme (SEIS)". The six different schemes of the earlier FTP (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agriculture Infrastructure Incentive Scrip, Vishesh Krishi and Gram Udyog Yojana and Incremental Export Incentive Scheme), which had varying sector-specific or actual user only conditions attached to their use have been merged into a single scheme, namely the Merchandise Export from India Scheme (MEIS).
o The 'Services Exports from India Scheme' (SEIS) is for increasing exports of notified services. The Served from India Scheme (SFIS) has been replaced with the Service Export from India Scheme (SEIS). The SEIS applies to ‘service providers located in India’ instead of ‘Indian service providers’. Thus, it provides for incentives to all service providers of notified services who are providing services from India, regardless of the constitution or profile of the service provider. The rates of incentivizing under the SEIS
are based on net foreign exchange earned. The incentive issued as duty credit scrip, will no longer carry an actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and service tax debits on procurement of services/goods.
o Merchandize exports from India (MEIS) to promote specific services for specific Markets Foreign Trade Policy.
o These schemes (MEIS and SEIS) replace multiple schemes earlier in place, each with different conditions for eligibility and usage. Incentives (MEIS & SEIS) to be available for SEZs also. e-Commerce of handicrafts, handlooms, books etc., eligible for benefits of MEIS.
♤ Agricultural and village industry products to be supported across the globe at rates of 3% and 5% under MEIS. Higher level of support to be provided to processed and packaged agricultural and food items under MEIS.
♤ Industrial products to be supported in major markets at rates ranging from 2% to 3%.
♤ Business services, hotel and restaurants to get rewards scrips under SEIS at 3% and other specified services at 5%.
♤ Duty credit scrips to be freely transferable and usable for payment of customs duty, excise duty and service tax.
♤ Inter-ministerial consultations to be held online for issue of various licences.
♤ Export obligation period for export items related to defence, military store, aerospace and nuclear energy to be 24 months instead of 18 months
♤ Calicut Airport, Kerala and Arakonam ICDS, Tamil Nadu notified as registered ports for import and export and Vishakhapatnam and Bhimavarm added as Towns of Export Excellence.