1. Conceptual Foundation

Meaning and Purpose

Foreign Trade refers to the cross-border exchange of goods, services, technology, and resources between a nation and the rest of the world. Trade Policy (formulated as the Foreign Trade Policy - FTP in India) establishes the legal, regulatory, fiscal, and operational roadmap governing exports and imports to achieve macroeconomic growth, industrial development, and balance of payments (BoP) stability. Export Promotion encompasses targeted government policies, fiscal incentives, duty remissions, institutional credit support, and infrastructure development designed to enhance the international price competitiveness of domestic products, augment foreign exchange reserves, reduce the merchandise trade deficit, and integrate domestic enterprises into Global Value Chains (GVCs).

Importance

In competitive civil services examinations (TGPSC / UPSC), Unit 8.6 is a high-frequency, top-tier topic. Exam questions consistently evaluate:

1. Targets and structural pillars of the Foreign Trade Policy (FTP) 2023–2028 (target of USD 2 Trillion total exports by 2030).
2. Modern, WTO-compliant export remission schemes: RODTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies) replacing legacy subsidy schemes like MEIS.
3. The newly launched Export Promotion Mission (EPM) (Union Budget initiative with ₹25,060 Crore outlay for 2025–2031) comprising Niryat Protsahan and Niryat Disha.
4. Institutional export hubs and manufacturing enclaves: Special Economic Zones (SEZs) under the SEZ Act, 2005 vs. National Investment and Manufacturing Zones (NIMZs) under the National Manufacturing Policy, 2011.
5. Export infrastructure and regional schemes: Districts as Export Hubs (DEH), Towns of Export Excellence (TEE), Advance Authorisation, and EPCG (Export Promotion Capital Goods).
6. Trade barrier mechanics: Tariff Barriers vs. Non-Tariff Barriers (NTBs), Anti-Dumping Duty, Countervailing Duty (CVD), and Quality Control Orders (QCOs).
7. India's empirical export-import dynamics (top exported/imported commodities, top trading partners, and merchandise trade deficit vs. invisible services surplus).

How Concepts Connect

1. Trade Deficit Driver: India consistently runs a merchandise trade deficit (visible imports exceeding visible exports due to heavy crude oil, electronic components, gold, and vegetable oil imports).
2. Invisibles & Policy Intervention: Although an invisible trade surplus (driven by software/IT service exports and remittances) partially offsets the merchandise deficit, maintaining external sector solvency requires aggressive Export Promotion.
3. Duty Remission Mechanics: To make Indian exports competitive without violating WTO rules against illegal subsidies, the state uses RODTEP to refund non-creditable hidden taxes (VAT on fuel, electricity duty, mandi tax).
4. Institutional & Regional Integration: Through Districts as Export Hubs (DEH) and Export Promotion Capital Goods (EPCG) schemes, manufacturing capacity is upgraded locally. Combined with trade financing under the Export Promotion Mission (EPM), this lowers logistics costs and expands India's global trade footprint.

                      FOREIGN TRADE & EXPORT PROMOTION ARCHITECTURE
                                            |
        +-----------------------------------+-----------------------------------+
        |                                                                       |
  FOREIGN TRADE POLICY & PROMOTION SCHEMES                            EXPORT INFRASTRUCTURE & INSTITUTIONS
        |                                                                       |
        +---> Foreign Trade Policy (FTP 2023-2028)                              +---> Export Enclaves & Zones
        |      |---> Target: USD 2 Trillion Exports by 2030                     |      |---> Special Economic Zones (SEZ Act, 2005)
        |      |---> 4 Pillars: Remission, Collaboration, EoDB, Emerging         |      |---> National Investment & Manufacturing Zones (NIMZ)
        |      |---> Towns of Export Excellence (TEE - 43 Towns)                |      |---> Export Processing Zones (Kandla 1965 - Asia's 1st)
        |      |---> Districts as Export Hubs (DEH)                             |
        |      |---> SCOMET & e-Commerce Export Hubs                            +---> Duty Exemption & Capital Schemes
        |                                                                       |      |---> Advance Authorisation Scheme (Duty-free inputs)
        +---> Export Remission & Incentive Framework                            |      |---> EPCG Scheme (Zero duty capital goods)
        |      |---> RODTEP (Replaces MEIS; refunds hidden taxes via e-scrips)  |
        |      |---> RoSCTL (Dedicated scheme for Garments & Textiles)          +---> Supporting Institutions
        |                                                                              |---> DGFT (Policy formulation & IEC issuance)
        +---> Export Promotion Mission (EPM: 2025-2031)                                 |---> EXIM Bank (1982) & ECGC (1957)
               |---> Niryat Protsahan (Financial & Trade Credit access)                |---> APEDA, MPEDA & Commodity Boards
               |---> Niryat Disha (Quality, Packaging, Logistics, Branding)            |---> AEO Programme (WCO SAFE FOS compliance)

Key Terms

1. Foreign Trade Policy (FTP): An integrated 5-year policy document formulated by the Ministry of Commerce and Industry establishing the regulatory, fiscal, and promotional framework for India's external trade.
2. RODTEP (Remission of Duties and Taxes on Exported Products): A WTO-compliant export remission scheme that reimburses un-refunded central, state, and local taxes/levies incurred in the production and distribution of exported goods.
3. Export Promotion Mission (EPM): A flagship outcome-based initiative (2025–2031, ₹25,060 Crore outlay) implemented by the DGFT to consolidate export support schemes and enhance trade finance access for MSMEs.
4. Special Economic Zone (SEZ): A specifically delineated, duty-free enclave deemed to be foreign territory for the purposes of trade operations, duties, and tariffs under the SEZ Act, 2005.
5. National Investment and Manufacturing Zone (NIMZ): Integrated industrial townships (minimum 5,000 hectares) created under the National Manufacturing Policy, 2011 to boost manufacturing's GDP share to 25% and generate employment.
6. Districts as Export Hubs (DEH): An initiative under FTP 2023 that identifies exportable products and services across all 700+ Indian districts to create District Export Action Plans.
7. Advance Authorisation Scheme: A duty-exemption scheme allowing duty-free import of raw materials, inputs, fuel, and catalysts consumed in manufacturing export goods.
8. EPCG (Export Promotion Capital Goods) Scheme: Allows the import of capital goods for pre-production, production, and post-production at zero custom duty, subject to fulfilling an export obligation.
9. Towns of Export Excellence (TEE): Recognized industrial towns producing goods worth ₹750 Crore or more (₹150 Crore for handloom/handicrafts), granted priority access to export promotion funds.
10. SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies): India's dual-use (civilian and military) export control classification list regulated under the FTP to fulfill non-proliferation commitments.

Short Timeline of Foreign Trade & Export Milestones in India

1. 1965: Establishment of Asia's first Export Processing Zone (EPZ) at Kandla, Gujarat.
2. 1982: Establishment of the Export-Import Bank of India (EXIM Bank) and NABARD.
3. 1991 (New Economic Policy): Abolished import licensing (except for hazardous items), devalued the Rupee, and dismantled rigid quantitative import restrictions.
4. 2000: Announcement of the SEZ Policy under the EXIM Policy.
5. 2005: Enactment of the Special Economic Zones (SEZ) Act, 2005 (came into force February 2006).
6. 2011: Notification of the National Manufacturing Policy (NMP), 2011 (introducing NIMZs).
7. 2015: Launch of the FTP 2015–2020 (introducing MEIS and SEIS schemes).
8. 2021 (January 1): Rollout of the RODTEP Scheme, replacing MEIS after a WTO dispute panel ruled direct export subsidies unlawful.
9. 2023 (April 1): Rollout of the Foreign Foreign Trade Policy (FTP) 2023, moving away from fixed 5-year expiration dates toward a dynamic, open-ended policy aimed at achieving USD 2 Trillion in exports by 2030.
10. 2025–2026: Cabinet approval of the Export Promotion Mission (EPM) (₹25,060 Crore outlay) and implementation of the eCoO 2.0 (electronic Certificate of Origin) platform.

2. Complete Core Notes

A. Foreign Trade Policy (FTP) 2023–2028: Architecture & Targets

1. Core Vision and Targets

• Target: Achieve USD 2 Trillion in total exports by 2030, split equally into USD 1 Trillion in merchandise exports and USD 1 Trillion in service exports.
• Policy Shift: Transitions from a traditional incentive-based regime (which faced WTO subsidy challenges) to a remission- and relief-based regime backed by automated technology, institutional collaboration, and ease of doing business.

2. Four Pillar Architecture of FTP 2023

1. Pillar 1: Incentive to Remission: Focuses on tax/duty remissions (RODTEP, RoSCTL) and duty-free input access (Advance Authorisation, EPCG).
2. Pillar 2: Export Promotion through Collaboration: Building partnerships between exporters, State Governments, District Export Promotion Committees (Districts as Export Hubs), and foreign missions.
3. Pillar 3: Ease of Doing Business & Automation: Paperless processing, zero-fee structures for MSMEs, digital issuing of duty scrips, and the eCoO 2.0 system.
4. Pillar 4: Emerging Areas: Promoting e-Commerce exports (post office export centres, raising courier export caps), stream-lining SCOMET dual-use licensing, and making India a green trade hub.

3. Key Operational Schemes under FTP 2023

1. Towns of Export Excellence (TEE):
   • Towns producing goods above specified threshold limits are designated as TEEs, gaining access to Market Access Initiative (MAI) funds and common service provider facilities under EPCG.
   • FTP 2023 Addition: Added 4 new towns—Faridabad (Apparel), Mirzapur (Handmade Carpets), Moradabad (Handicrafts), and Varanasi (Handloom/Handicrafts)—taking the total count to 43 TEEs.
2. Districts as Export Hubs (DEH):
   • Focuses on decentralized export promotion by formulating District Export Action Plans for every district, identifying unique regional products (aligned with One District One Product - ODOP).
3. SCOMET Licensing Simplification:
   • Simplifies export licensing for dual-use high-technology items, defense components, and chemical/biological materials to facilitate integration into global supply chains.
4. One-Time Amnesty Scheme:
   • A special settlement window under the Vivad se Vishwas principle for exporters who defaulted on their Export Obligations under legacy EPCG and Advance Authorisation schemes, allowing them to regularize defaults by paying un-customs duty plus capped interest.

B. Modern Export Incentive & Remission Framework: RODTEP & EPM

1. RODTEP (Remission of Duties and Taxes on Exported Products)

• Background: Launched on January 1, 2021 to replace the legacy Merchandise Exports from India Scheme (MEIS), which was struck down by the WTO Dispute Settlement Panel as an unlawful export subsidy.
• Underlying Principle: Based on the fundamental international trade canon that "Goods should be exported, but taxes and domestic duties should NOT be exported".
• Mechanism:
  • Reimburses non-creditable, hidden central, state, and local taxes that are not refunded through GST or Customs Duty Drawback (e.g., VAT on petroleum used in transportation, electricity duty, mandi tax, municipal fees, and stamp duty on export documentation).
  • Rebates are issued as transferable digital duty scrips (e-scrips) maintained in automated electronic ledgers by CBIC, which exporters can use to pay basic customs duty or sell in the open market.
• Coverage: Covers all major manufacturing sectors, with extended benefits to Advance Authorisation holders, Export-Oriented Units (EOUs), and SEZ units.
• Nodal Bodies: Notified by the Directorate General of Foreign Trade (DGFT) under MoCI; implemented by the Department of Revenue, Ministry of Finance. Extended through March 31, 2026.

2. RoSCTL (Rebate of State and Central Taxes and Levies)

• A specialized remission scheme dedicated exclusively to the apparel, garments, and made-ups sector to offset embedded taxes and boost textile competitiveness.

3. Export Promotion Mission (EPM) (2025–2031)

• Overview: Announced in the Union Budget and approved by the Cabinet as a flagship, outcome-based mission implemented by the DGFT (2025-26 to 2030-31, Total Outlay: ₹25,060 Crore).
• Core Objective: Creates a unified, technology-driven framework consolidating existing scattered export-support schemes under two primary sub-schemes:
  1. Niryat Protsahan: Enhances MSME access to affordable trade finance via interest subvention, export factoring, and credit guarantees (integrating the Interest Equalisation Scheme - IES).
  2. Niryat Disha: Provides non-financial capacity building, export quality improvement, international branding, packaging, logistics assistance, and trade fair participation (integrating the Market Access Initiative - MAI).

C. Export Infrastructure: SEZs vs. NIMZs

1. Special Economic Zones (SEZs)

• Governing Law: Special Economic Zones Act, 2005 (supported by SEZ Rules, 2006).
• Core Concept: Specifically delineated duty-free enclaves deemed to be foreign territory for trade operations and customs duties.
  • Supplies from Domestic Tariff Area (DTA) into an SEZ = Treated as Exports.
  • Supplies from an SEZ into the DTA = Treated as Imports (attracting full customs duties).
• Fiscal Incentives:
  • 100% FDI allowed under the Automatic Route for all manufacturing activities.
  • Income Tax Sunset Clause: 100% tax exemption for the first 5 years, 50% for the next 5 years, and 50% exemption on re-invested export profits for the final 5 years (for units set up prior to April 1, 2020).
  • Supplies to SEZs are Zero-Rated under GST (exempt from GST and central excise).
  • Exemption from State taxes, stamp duty, and land conversion fees.
• International Financial Services Centres (IFSCs): Section 18 of the SEZ Act permits the establishment of an IFSC within an SEZ (e.g., GIFT City in Gujarat).

2. National Investment and Manufacturing Zones (NIMZs)

• Policy Origin: Introduced under the National Manufacturing Policy (NMP), 2011 administered by DPIIT.
• Primary Objective: Envisaged as massive integrated industrial townships (minimum area of 5,000 hectares) to increase manufacturing's share in GDP to 25% and create 100 million jobs.
• Governance: Declared as autonomous industrial townships by State Governments under Article 243Q(c) of the Constitution, managed by a Special Purpose Vehicle (SPV).

D. Tariff vs. Non-Tariff Barriers & Trade Protection Tools

1. Tariff Barriers

Customs duties imposed on cross-border movement of goods (Ad-valorem duty based on percentage value, or Specific duty based on weight/quantity) to raise revenue or protect domestic industries.

2. Non-Tariff Barriers (NTBs)

Administrative, technical, or quantitative measures that restrict international trade without imposing direct customs tariffs:

1. Import Quotas: Direct quantitative caps on the volume/value of a good imported.
2. Voluntary Export Restraints (VERs): Bilateral agreements where an exporting country limits exports to avoid formal import sanctions.
3. Quality Control Orders (QCOs): Mandatory product standards enforced by the Bureau of Indian Standards (BIS) under the BIS Act, 2016. Imports failing BIS certification are barred from entry.
4. Sanitary and Phytosanitary (SPS) Measures: Health, food safety, and animal/plant disease standards allowed under WTO rules to protect domestic ecosystems.
5. Domestic Content Requirements (DCR): Mandating that a specified percentage of input components be sourced locally (e.g., ruled non-compliant by WTO in India's JNNSM Solar Dispute).

3. Anti-Dumping Duty vs. Countervailing Duty (CVD)

• Anti-Dumping Duty: Imposed on imported goods sold in the domestic market at prices below fair market value or below cost of production ("predatory pricing"), intended to cripple domestic competitors.
• Countervailing Duty (CVD): Imposed on imported goods that have received direct or indirect subsidies from foreign governments, restoring fair price parity.

E. Supporting Export Institutions & Trade Logistics

1. Directorate General of Foreign Trade (DGFT): Attached office of the Ministry of Commerce and Industry responsible for formulating FTP, issuing Importer Exporter Codes (IEC), and administering RODTEP, EPM, and SCOMET.
2. EXIM Bank (Export-Import Bank of India, 1982): Specialized DFI providing term loans, buyer's credit, supplier's credit, and project export financing to Indian exporters and overseas buyers.
3. ECGC (Export Credit Guarantee Corporation, 1957): State-owned enterprise under MoCI providing credit risk insurance to Indian exporters against commercial losses (buyer insolvency) and political risks.
4. APEDA & MPEDA: Statutory export authorities for agricultural processed foods (APEDA, 1986) and marine products (MPEDA, 1972).
5. Authorised Economic Operator (AEO) Programme: A voluntary compliance framework under the WCO SAFE FOS, administered by CBIC, granting trusted exporters faster customs clearance and deferred duty payment.

F. Plain-Text Formulas & Equations

1. Merchandise Balance of Trade (BoT): BoT = Merchandise Exports - Merchandise Imports

2. Overall Net Trade Balance: Overall Trade Balance = (Merchandise Exports + Service Exports) - (Merchandise Imports + Service Imports)

3. Net Foreign Exchange (NFE) Earnings (for SEZs): NFE = Cumulative Export Earnings - (Cumulative Value of Imported Inputs + Foreign Exchange Outflows)

4. RODTEP Rebate Value: Rebate Amount = Freight on Board (FOB) Export Value * Product Specific RODTEP Percentage Rate

5. EPCG Export Obligation Identity: Required Export Obligation = 6 * Total Duty Saved on Imported Capital Goods (to be fulfilled over 6 years)

3. Key Concepts & Distinctions

Table 1: SEZ (Special Economic Zone) vs. NIMZ (National Investment & Manufacturing Zone)

Table 2: Legacy MEIS vs. Modern RODTEP Scheme

Table 3: Advance Authorisation vs. EPCG Scheme

Table 4: Anti-Dumping Duty vs. Countervailing Duty (CVD)

4. Important One-Liners

1. The Foreign Trade Policy (FTP) 2023 sets a target of USD 2 Trillion in exports by 2030.
2. India aims to achieve USD 1 Trillion in merchandise exports and USD 1 Trillion in service exports by 2030.
3. Asia's first Export Processing Zone (EPZ) was established at Kandla, Gujarat in 1965.
4. FTP 2023 added four new Towns of Export Excellence: Faridabad, Mirzapur, Moradabad, and Varanasi (total 43 TEEs).
5. The RODTEP Scheme was launched on January 1, 2021 to replace the WTO-incompatible MEIS scheme.
6. RODTEP rebates are issued as transferable electronic duty scrips (e-scrips) in automated ledgers managed by CBIC.
7. RODTEP operates under the principle that "goods should be exported, but domestic taxes/duties should not be exported".
8. The RoSCTL Scheme provides rebate of central and state levies exclusively for the garments and apparel sector.
9. The Export Promotion Mission (EPM) was approved for FY 2025–2031 with a total financial outlay of ₹25,060 Crore.
10. EPM sub-scheme Niryat Protsahan focuses on trade finance, interest subvention, and MSME credit guarantees.
11. EPM sub-scheme Niryat Disha focuses on export quality, packaging, logistics, and international branding.
12. The Special Economic Zones Act was passed in 2005 and came into effect in February 2006.
13. Supplies from the Domestic Tariff Area (DTA) into an SEZ are treated legally as Exports.
14. Supplies from an SEZ into the DTA are treated legally as Imports attracting customs duty.
15. 100% FDI is allowed under the Automatic Route for manufacturing units in SEZs.
16. NIMZs were introduced under the National Manufacturing Policy, 2011 with a minimum area of 5,000 hectares.
17. NIMZs are declared autonomous industrial townships under Article 243Q(c) of the Constitution.
18. The Advance Authorisation Scheme permits duty-free import of raw materials consumed in export manufacturing.
19. The EPCG Scheme allows duty-free import of capital goods subject to exporting 6 times the duty saved in 6 years.
20. SCOMET regulates export licensing for dual-use civilian and military technology products.
21. The Directorate General of Foreign Trade (DGFT) formulates and implements India's Foreign Trade Policy.
22. The EXIM Bank of India was established in 1982 as the principal DFI for foreign trade financing.
23. The Export Credit Guarantee Corporation (ECGC) was set up in 1957 to provide credit risk insurance to exporters.
24. APEDA (1986) promotes agricultural exports, while MPEDA (1972) promotes marine product exports.
25. Quality Control Orders (QCOs) enforced by the BIS act as non-tariff barriers against sub-standard imports.
26. Anti-Dumping Duty neutralizes foreign predatory pricing below domestic fair market value.
27. Countervailing Duty (CVD) neutralizes foreign government export subsidies.
28. The eCoO 2.0 system was launched by DGFT for paperless digital issuance of Non-Preferential Certificates of Origin.
29. India's USA is the top export destination (~17%), followed by the UAE (~7%) and the Netherlands (~5%).
30. India's merchandise imports exceed merchandise exports, resulting in a persistent merchandise trade deficit.

5. PYQ-Based Bits

• Historical Evolution of Export Zones (UPSC / State PSCs):
  • Asia's first Export Processing Zone (EPZ) was set up at Kandla, Gujarat in 1965.
  • The SEZ Policy was announced in 2000 under the EXIM Policy, statutory backed by the SEZ Act, 2005.
• TRIMS Agreement Rules (UPSC 2020):
  • Trade-Related Investment Measures (TRIMS) prohibits quantitative restrictions on imports imposed on foreign investors.
  • TRIMS applies strictly to trade in goods ONLY (it does NOT apply to trade in services).
  • TRIMS is not concerned with directly regulating foreign equity investments, but with eliminating discriminatory trade practices.
• Trade Balance & Invisibles Dynamics (UPSC 2020):
  • India's merchandise exports are less than merchandise imports (Merchandise Trade Deficit).
  • India's exports of services exceed imports of services (Service Trade Surplus).
  • India's software/IT exports and worker remittances form the primary drivers of invisible earnings.
• Agricultural Import Inclusions (UPSC 2019):
  • Vegetable oils account for the highest import value among agricultural commodities imported by India in recent years (~70% import dependency).
• World Rice Export Leader (UPSC 2019):
  • India has consistently emerged as the largest exporter of rice in the world over recent years.
• Solar Energy WTO Dispute & DCR (UPSC 2017):
  • The WTO Appellate Body declared Domestic Content Requirements (DCR) in India's Jawaharlal Nehru National Solar Mission (JNNSM) non-compliant with global non-discrimination trade rules.

6. analysis.pdf Exam Analysis

• Priority: HIGH (Unit 8.6 is a core policy and operational unit evaluated continuously in civil services external sector papers).
• Frequently Tested Subtopics:
  1. FTP 2023–2028 targets ($2 Trillion total exports by 2030; $1T merchandise + $1T services).
  2. Remission schemes: RODTEP vs. legacy MEIS (WTO compliance, e-scrips, DGFT/CBIC roles) and EPM (₹25,060 Cr outlay).
  3. SEZ Act, 2005 vs. NIMZ National Manufacturing Policy, 2011 (size, Article 243Q(c), DTA sales rules).
  4. Duty exemption tools: Advance Authorisation (inputs) vs. EPCG (capital goods 6x/6yrs rule).
  5. Trade barriers: Tariff vs. Non-Tariff Barriers (QCOs, BIS), Anti-Dumping Duty vs. Countervailing Duty (CVD).
  6. Empirical trade facts: Top export commodities (petroleum products, software) and top destinations (USA #1, UAE #2).
• Common Question Patterns: Multi-statement verification MCQs testing scheme rules (RODTEP, SEZ vs NIMZ), WTO TRIMS applicability, and commodity import/export rankings.
• Factual / Conceptual / Numerical / Statement Tendency: Heavily Statement-Based Conceptual paired with Exact Years, Schemes & Targets ($2 Trillion FTP 2030 target, Jan 1, 2021 RODTEP start, 5,000 ha NIMZ minimum, Kandla 1965 EPZ).
• Simple Frequency Terms: SEZ vs NIMZ Features (Very Frequent); RODTEP & Export Incentives (Very Frequent); TRIMS & WTO Trade Rules (Frequent); Empirical Commodity Import/Export Trends (Frequent).

7. Exam Traps

• Confusion: Believing that the RODTEP scheme is a direct cash export subsidy based on export turnover. → Correct understanding: RODTEP is NOT a subsidy. It is a WTO-compliant duty remission scheme that refunds un-creditable embedded domestic taxes (VAT on fuel, electricity duty, mandi tax) in the form of electronic duty scrips (e-scrips).

• Confusion: Assuming that sales made by an SEZ unit into the Domestic Tariff Area (DTA) are treated as domestic sales exempt from custom duties. → Correct understanding: SEZ enclaves are treated as foreign territory. Sales from an SEZ into the DTA are legally treated as Imports into India and attract full customs duties.

• Confusion: Believing that the WTO TRIMS agreement applies to investment measures in both goods and services. → Correct understanding: Under Article 1 of TRIMS, the agreement applies STRICTLY to trade in GOODS only (it does NOT cover trade in services).

• Confusion: Assuming that NIMZs are smaller in physical size than SEZs. → Correct understanding: NIMZs are massive integrated townships with a minimum area requirement of 5,000 hectares. SEZ minimum size requirements range from 10 to 1,000 hectares.

• Confusion: Believing that Anti-Dumping Duty and Countervailing Duty (CVD) are identical protectionist taxes. → Correct understanding: Anti-Dumping Duty targets predatory under-pricing by foreign private firms below fair cost. Countervailing Duty (CVD) targets foreign government subsidies given to foreign exporters.

8. Rapid Revision

1. FTP 2023 Export Target: USD 2 Trillion by 2030 (USD 1T Merchandise + USD 1T Services).
2. Kandla EPZ (1965): Asia's first Export Processing Zone established in Gujarat.
3. Towns of Export Excellence (TEE): 43 recognized towns; 4 new added in 2023 (Faridabad, Mirzapur, Moradabad, Varanasi).
4. RODTEP Rollout: January 1, 2021 (extended to March 31, 2026); replaced legacy MEIS.
5. RODTEP Mechanism: Refunds hidden embedded taxes via transferable electronic duty scrips (e-scrips).
6. RoSCTL: Dedicated tax rebate scheme for apparel and garment exports.
7. Export Promotion Mission (EPM): Outlay of ₹25,060 Crore (2025–2031); managed by DGFT.
8. EPM Sub-schemes: Niryat Protsahan (Trade finance/subvention) + Niryat Disha (Quality, packaging, branding).
9. SEZ Act, 2005: Came into force Feb 2006; enclaves deemed foreign territory.
10. SEZ Trade Status: DTA to SEZ = Export; SEZ to DTA = Import (attracts customs duty).
11. NIMZ Minimum Size: 5,000 hectares under National Manufacturing Policy, 2011.
12. NIMZ Authority: Constitutional status under Article 243Q(c) managed by SPVs.
13. Advance Authorisation: Allows duty-free import of raw material inputs physically consumed in export goods.
14. EPCG Scheme: Allows duty-free import of capital goods; obligation to export 6x duty saved in 6 years.
15. SCOMET: Regulates dual-use civilian and military technology export licensing.
16. DGFT: Formulates FTP, issues Importer Exporter Codes (IEC), and administers RODTEP/EPM.
17. EXIM Bank (1982): Principal DFI for foreign trade financing.
18. ECGC (1957): Provides export credit risk insurance against commercial and political losses.
19. Anti-Dumping Duty: Offsets foreign predatory pricing below fair cost.
20. Countervailing Duty (CVD): Offsets foreign government export subsidies.
21. Non-Tariff Barriers: Quotas, QCOs (BIS standards), SPS measures, and Domestic Content Requirements.
22. TRIMS Scope: Applies strictly to trade in goods (prohibits quantitative import restrictions).
23. Top Export Destination: USA (#1) (~17% share), followed by UAE (#2) and Netherlands (#3).
24. Top Agricultural Export: Rice (India is the world's largest exporter).
25. Top Agricultural Import: Vegetable oils (highest value import commodity).