The Impact of Foreign Trade Policy 2015-2020 on Inclusive Growth of India

Foreign Trade Policy or the FTP is the set of guidelines or the procedures which are being formulated by the government to incorporate in the economy and being followed so as to attain maximum amount of Foreign Trade. Due to uneven distribution of natural resources and the theory of comparative cost, some countries are more suitable place to produce some goods more economically than other countries which encourages foreign trade. The new Foreign Trade Policy (2015-20) is made product wise and location wise and tried to maximize the foreign trade from the country keeping in mind Central Government's pet projects, 'Make in India' and 'Digital India' so as to attain export target of 900 billion dollars by year 2020 through newly introduced two schemes. The Policy spells out measures for increased digitalization of exports and imports with the aim to gradually move towards a paperless office in 24?7 environment and self-certification by established exporters and importers. The export promotion of capital goods scheme (EPCG) is also made lucrative. Incentives are available for SEZs also. These measures will create more employment avenues in manufacturing and services.