Introduction
India's Foreign Trade Policy (FTP) is the foundational document that governs all export and import activities — defining the incentive schemes, procedural norms, and compliance obligations that shape the commercial economics of every export transaction from India. The current FTP, covering the period 2023–2028, was announced by the Ministry of Commerce on April 1, 2023, and represents the most significant overhaul of India's trade policy framework in a decade.
For an exporter, the FTP is not abstract policy — it is the document that determines your RoDTEP rates, defines your EPCG obligation, governs your Advance Authorisation compliance, sets the rules for your RCMC and EPC membership, and outlines the framework for India's FTA-related trade facilitation. Understanding the FTP's key provisions is not optional background reading. It is operational knowledge that directly affects how you claim incentives, manage compliance obligations, and plan your export business.
This guide covers the FTP 2023-28's most important provisions for exporters — in plain language, with the practical implications of each provision clearly explained.
The Philosophy of FTP 2023-28: What Changed
The FTP 2023-28 was built on four pillars articulated by the Ministry of Commerce:
- Incentive to remission: Moving away from direct export subsidies (which face WTO challenges) toward remission of taxes and duties actually paid — the RoDTEP model
- Export promotion through collaboration: Greater engagement with state governments, Districts as Export Hubs (DEH), and industry associations
- Ease of doing business, reduction in transaction costs: Digital processes, automation, reduced documentation requirements
- Emerging areas: E-commerce exports, services exports, dual use high-tech items
The most significant structural change: the FTP 2023-28 does not have a fixed sunset date in the same way as earlier policies. Earlier FTPs were typically for 5 years with a rigid expiry. The current FTP is designed to be a "living document" — capable of being updated continuously through policy notifications rather than replaced wholesale every 5 years. This means specific scheme parameters (RoDTEP rates, EPCG thresholds, incentive categories) can be updated without a full FTP revision.
RoDTEP: The Successor to MEIS
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is the cornerstone export incentive of FTP 2023-28. It replaced MEIS (Merchandise Exports from India Scheme) — which the WTO had ruled was a prohibited export subsidy — with a WTO-compliant remission mechanism.
Under RoDTEP, exporters receive a credit against embedded indirect taxes that are not refunded under any other mechanism — primarily VAT/CST on fuel used in production and transportation, electricity duty, mandi tax, and other state-level levies. Unlike MEIS which was a straightforward export incentive, RoDTEP is technically a tax remission — it returns to the exporter only taxes they actually paid.
Key FTP 2023-28 provisions on RoDTEP:
- Rates are published by the Ministry of Finance/Commerce and are HS code-specific at the 8-digit level
- Credited as transferable duty credit scrips through the ICEGATE system
- Scrips can be used against import duty payment or sold on BSE/NSE e-bidding platforms
- Scrip validity: 18 months from issue date — expired scrips are worthless and cannot be renewed
- Excluded categories: SEZ and EOU units (they have their own duty exemption frameworks), certain sectors where the duty remission framework is not applicable
EPCG Scheme Under FTP 2023-28
The Export Promotion Capital Goods (EPCG) scheme continues under FTP 2023-28 with largely the same structure as previous policies, but with some rationalisation of procedures:
- Zero basic customs duty on import of capital goods used for export production
- Export obligation: 6 times the duty saved, over 6 years from the date of authorisation
- Minimum value addition: Not applicable under current EPCG — the scheme focuses on the duty-obligation relationship
- EPCG for common service providers: FTP 2023-28 expanded EPCG access to common service providers (e.g., testing labs, warehousing facilities, logistics service providers) who support exporters but are not exporters themselves
- Technology upgrade for MSME clusters: Special provision allowing MSME clusters to collectively use EPCG for technology upgrade — the cluster EO is discharged through the combined exports of cluster members
- Post-Export EPCG: Export first, import capital goods after — an alternative pathway for established exporters who can demonstrate past export performance equal to the required EO
Advance Authorisation Under FTP 2023-28
The Advance Authorisation (AA) scheme under FTP 2023-28 maintains the core framework of duty-free import of inputs for export production, with several procedural improvements:
- 18-month validity for imports, extendable to 36 months in total
- SION (Standard Input-Output Norms) continue to be the primary basis for determining input quantities
- Self-ratification of SION: FTP 2023-28 introduced a self-ratification facility — exporters with 2 years of export performance in the same product can self-declare input-output norms without waiting for the Norms Committee to fix them. This significantly reduces the wait time for new or revised SION norms.
- Value addition requirement: Positive Net Foreign Exchange earnings (NFE) — the FOB value of exports must exceed the CIF value of imports under the AA by a specified margin
- Physical exports requirement: An AA is primarily for physical goods exports — supply to SEZ and deemed exports also count toward EO discharge
Towns of Export Excellence (TEE)
FTP 2023-28 recognises specific towns and clusters as Towns of Export Excellence (TEE) based on their export concentration in specific product categories. TEE status provides:
- Priority access to government support schemes
- Common Service Facilities (testing labs, design centres, packaging facilities) supported through government funding
- Market Access Initiative (MAI) scheme priority for TEE-based exporters
- Focused attention from EPCs and government agencies for export promotion activities
Declared TEEs include: Tiruppur (knitwear), Ludhiana (woollen knitwear and bicycles), Panipat (recycled textiles), Moradabad (brassware), Jodhpur (handicrafts), Vaniyambadi (leather goods), Mirzapur/Bhadohi (carpets), Firozabad (glassware), and several others. If your manufacturing base is in one of these towns, your TEE status is a platform for accessing additional export support.
Districts as Export Hubs (DEH)
One of the most innovative provisions of FTP 2023-28 is the District Export Hub (DEH) initiative — a joint Ministry of Commerce and state government programme to identify and develop export potential at the district level across India.
Under the DEH framework:
- Each district has a District Export Action Plan (DEAP) identifying the district's key export products and sectors
- District Export Promotion Committees (DEPC) — co-chaired by the District Collector and DGFT Regional Authority — coordinate export support activities at the district level
- Exporters in DEH districts get priority for market development support, trade fair participation, and government scheme facilitation
This initiative is particularly significant for exporters in smaller cities and semi-urban areas who previously had to travel to major metro DGFT offices for support. The DEH framework brings DGFT and EPC support closer to manufacturing clusters across the country.
E-Commerce Exports: New FTP Framework
FTP 2023-28 is the first Indian FTP to have a dedicated chapter on e-commerce exports — reflecting the explosive growth of direct-to-consumer exports through platforms like Amazon Global, eBay, Etsy, Meesho Global, and others.
Key FTP 2023-28 e-commerce provisions:
- Courier exports up to ₹10 lakh per consignment: The FTP 2023-28 raised the value limit for courier-based export shipments — making it easier to export higher-value goods directly to overseas consumers through DHL, FedEx, and similar courier services
- RoDTEP for e-commerce: E-commerce exports are eligible for RoDTEP benefits — a significant improvement from earlier policies where e-commerce exports had restricted access to incentives
- Simplified returns processing: Goods returned by overseas buyers through e-commerce platforms can be re-imported without payment of customs duty — recognising that returns are an inherent part of e-commerce trade
- ICEGATE integration with e-commerce platforms: Ongoing development of electronic data interchange between major e-commerce platforms and ICEGATE to simplify customs filing for e-commerce exports
- Export Hubs for e-commerce: Specific facilities being developed at major courier hubs (Delhi, Mumbai, Bengaluru, Chennai) to facilitate faster customs clearance for e-commerce export shipments
Status Holder Scheme Under FTP 2023-28
The Status Holder scheme continues under FTP 2023-28, recognising exporters based on their export performance:
- One Star Export House: ₹3 crore export performance
- Two Star Export House: ₹25 crore
- Three Star Export House: ₹100 crore
- Four Star Export House: ₹500 crore
- Five Star Export House: ₹2,000 crore
Benefits of status holder recognition:
- Self-certification of documents for customs and DGFT purposes
- Priority processing of EPCG and AA applications at DGFT
- Relaxed conditions under some FTP schemes
- Eligibility for government export promotion events reserved for status holders
- Enhanced credibility with buyers and banks
Status is valid for 5 years and must be renewed by re-application with updated export performance data.
Export of Services: Key FTP 2023-28 Provisions
FTP 2023-28 strengthened the framework for services exports — India's fastest-growing export category:
- SEIS (Service Exports from India Scheme): SEIS is under review and revision during the FTP 2023-28 period. The earlier SEIS structure faced WTO challenges similar to MEIS. The government is developing a replacement incentive for service exports aligned with WTO rules. Monitor Ministry of Commerce notifications for SEIS replacement scheme announcements.
- SEPC (Services Export Promotion Council): Strengthened role in market access development, particularly for IT/ITES, tourism, education, and professional services
- Services under RoDTEP: Extension of RoDTEP-like remission to services exports being evaluated — currently RoDTEP primarily covers goods exports
Amnesty Scheme — One-Time Opportunity
A notable feature of the FTP 2023-28 announcement was an Export Obligation Outstanding Amnesty Scheme — a one-time opportunity for exporters who had defaulted on EPCG or Advance Authorisation export obligations to regularise their position by paying the duty saved with interest, without penalty.
This scheme was particularly significant for exporters who had imported capital goods or inputs under duty-free schemes during the COVID-19 disruption period and had been unable to meet their export obligations due to the pandemic's commercial impact. The amnesty window was time-limited at announcement — check the current status of amnesty provisions with DGFT if you have outstanding EPCG or AA obligations.
Changes to Deemed Exports
Deemed exports — domestic supply transactions treated as exports for FTP benefit purposes — have been rationalised under FTP 2023-28:
- Supply to EOUs (Export-Oriented Units): Continues as deemed export
- Supply to projects funded by multilateral agencies (World Bank, ADB): Continues
- Supply to mega power projects: Continues with updated project-value thresholds
- Supply to projects under International Competitive Bidding: Continues
Deemed export benefits include: Advance Authorisation for the supplier, post-supply Drawback, and refund of terminal excise duty in applicable cases.
FTP 2023-28 and India's FTAs
FTP 2023-28 was drafted with explicit recognition of India's growing FTA network — India-UAE CEPA, India-Australia ECTA, and the ongoing India-EU FTA negotiations. Key FTA-related FTP provisions:
- Rules of Origin (ROO) compliance: FTP 2023-28 provides detailed guidance on demonstrating product origin for FTA Certificate of Origin applications — particularly important given the new CEPAs with stricter value addition requirements than older FTAs
- COO issuance digitisation: DGFT is progressively digitising the preferential Certificate of Origin issuance process — reducing processing time and enabling electronic COOs that are faster and more secure than paper equivalents
- FTA utilisation tracking: DGFT is developing analytics to track how much of the potential FTA benefit is being claimed by Indian exporters — with the goal of identifying and addressing underutilisation
Practical FTP Compliance Calendar for Exporters
The FTP requires ongoing compliance actions throughout the year. Here is a simplified annual calendar:
- April 1: File LUT on GST portal for new financial year
- April 1–June 30: Complete IEC annual update on DGFT portal
- Quarterly: Review EPCG export obligation progress against annual minimum (1/6th of total EO)
- Monthly: Declare shipments under ECGC policy (if applicable); file GSTR-1 with correct export invoice and Shipping Bill data
- On each shipment: Instruct CHA to file RoDTEP + Drawback Shipping Bill; verify GSTR-1 Shipping Bill data before submission; check EGM after vessel departure
- Annually: Review RCMC renewal requirements for your EPC; assess EPCG and AA obligations for remaining period; check status holder eligibility
- As needed: Apply for Advance Authorisation before major production runs using imported inputs; apply for EPCG before importing new capital goods
Where to Access FTP 2023-28 Documentation
- Full FTP 2023-28 text and Handbook of Procedures: dgft.gov.in → FTP → Foreign Trade Policy 2023-28
- Policy updates and notifications: DGFT Notifications section on dgft.gov.in (subscribe to email alerts)
- RoDTEP rate schedule: CBIC website (cbic.gov.in) and Eximigo's Tariff Checker
- EPCG and AA applications: DGFT portal online application system
Frequently Asked Questions
How is FTP 2023-28 different from the earlier FTP 2015-20?
The most fundamental difference is the shift from direct export incentives (MEIS gave a percentage of FOB value as benefit regardless of actual tax incidence) to tax remission (RoDTEP remits only actual taxes paid). This makes RoDTEP WTO-compliant in a way MEIS was not. FTP 2023-28 also introduced the DEH initiative (no earlier equivalent), strengthened the e-commerce framework (earlier policies had minimal e-commerce provisions), and adopted the "living document" approach with dynamic updates rather than a fixed 5-year cycle.
I have unresolved EPCG export obligations from the FTP 2015-20 period. Do the new FTP provisions apply?
EPCG authorisations issued under earlier FTPs continue to be governed by the provisions applicable at the time of their issuance. You cannot retroactively apply FTP 2023-28 provisions to an AA or EPCG issued under FTP 2015-20. However, the Amnesty Scheme announced with FTP 2023-28 was specifically designed to help exporters resolve outstanding obligations from earlier policy periods — check with DGFT on the current status of amnesty provisions.
Does the FTP 2023-28 change the requirements for Advance Authorisation SION?
Yes — the introduction of the self-ratification facility is a meaningful change. Established exporters (2+ years' experience with the same product) can now self-declare input-output norms rather than waiting for the Norms Committee. This is a significant procedural improvement that reduces the AA processing time for experienced exporters. New exporters or those without 2 years of product-specific export history still follow the standard SION or Norms Committee route.
How do I stay updated on FTP 2023-28 changes as the policy evolves?
Subscribe to DGFT's email notification service (available on dgft.gov.in) — every policy notification is issued as a DGFT notification number and emailed to subscribers. Also subscribe to FIEO's weekly trade newsletter and your relevant EPC's member communications — they summarise and explain the practical implications of policy updates for their specific sector. Eximigo's trade news section also tracks significant FTP and trade policy changes.
Conclusion
India's Foreign Trade Policy 2023-28 is a practical, business-oriented document that defines the incentive architecture, compliance obligations, and procedural framework within which every Indian exporter operates. Understanding its key provisions is not an academic exercise — it directly determines how much incentive income you collect, how you manage your scheme obligations, and how you position your business within India's export promotion ecosystem.
The most important action for any exporter who has not carefully read the FTP 2023-28 is to spend two hours with the Ministry of Commerce's summary document (available on dgft.gov.in). Not the full policy text — that runs to hundreds of pages — but the scheme-by-scheme summary of provisions relevant to your business. The specific incentive rates, scheme thresholds, and procedural requirements that affect your business daily are all encoded in this document and its implementing notifications.
Subscribe to DGFT notifications. Stay current. The FTP's "living document" nature means that specific rates and procedures you rely on today may be updated through a notification tomorrow — and the exporter who catches that update first either benefits from a rate improvement or avoids a compliance gap.
