There is a focus on the regulations governing the export of dual-use items, munitions, and nuclear-related items, collectively referred to as SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies). India, as a signatory to various international conventions and export control regimes the likes of Australia group, regulates these exports to prevent proliferation of weapons of mass destruction and related technologies. The policy emphasized the “export control” system more as its integration with other countries that adhere to the regime grows.

Additionally, there are catch-all controls for items not explicitly listed in SCOMET but deemed to pose risks related to weapons of mass destruction or military use. The policy encourages industry outreach programs and voluntary self-disclosure of non-compliance to enhance awareness and compliance among exporters. Centralized issuance, amendment, and revalidation of SCOMET authorizations are managed by DGFT headquarters to ensure effective control and oversight.

Merchanting Trade

Merchanting trade is recognised as an emerging area and a visionary strategy is outlined to position India as a key player in global merchanting trade, focusing on facilitating the movement of goods between foreign countries without involving Indian intermediaries or ports. This initiative aims not only to boost trade volumes but also to create job opportunities and enhance India’s resilience to economic shocks by diversifying trade routes and dependencies. By promoting locations like GIFT City as merchanting hubs akin to global centers such as Dubai and Singapore, India seeks to strengthen its trade infrastructure and negotiating power on the international stage, thereby fostering sustainable economic growth and prosperity.

Compliance with the WTO Norms

India has taken significant measures to align its trade policies with WTO norms, reflecting its commitment to international trade regulations. These measures include reforms aimed at enhancing transparency, streamlining import-export procedures, and ensuring compliance with intellectual property rights. Additionally, India has revised its tariff structures to adhere more closely to WTO guidelines and has actively participated in multilateral negotiations to promote fair and equitable trade practices globally. By implementing these measures, India seeks to foster a more open and predictable trade environment while enhancing its integration into the global economy in accordance with WTO principles.

Merchandise Exports from India Scheme (MEIS)

MEIS was replaced by RoDTEP scheme which adheres to WTO guidelines by ensuring that taxes and duties imposed domestically on exported products are either exempted or refunded. This approach prevents the exportation of taxes and aims to enhance the competitiveness of Indian goods in the global market.

The transition was made to align with global trade practices prescribed by the WTO and to ensure that Indian exporters receive more comprehensive support in terms of tax and duty reimbursements.

Service Exports from India Scheme (SEIS)

The government has opted to discontinue incentives for services exporters under the SEIS, with the FTP excluding any successor scheme.