India’s Foreign Trade Policy (FTP) which was applicable till March end has been extended by six months till Sep 30, given the current COVID-19 lockdown. The policy was drafted under the country’s five-year plan in 2015. A new policy will be rolled out by the Directorate General of Foreign Trade (DGFT) for 2020-25 in the near term.

 

At present trade and economic activity across the world remains pressured due to the virus outbreak. Indian overseas trade also at present remains hampered with shipments piled up at port.  It is believed, the government is likely to announce additional measures to boost seaborne trades in coming days.

 

With the new policy, popular schemes such as Merchandise Export from India Scheme (MEIS) and the Export Promotion Capital Goods (EPCG) scheme will be phased out to adhere to the WTO rules. However, due to the extension of the current policy, MEIS and EPCG will continue to hold for the next six months.

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