Trade Promotion Schemes — Prelims Strategy

Prelims Strategy

For Prelims, your strategy for Trade Promotion Schemes should be multi-faceted, focusing on factual accuracy and conceptual clarity. Firstly, create a concise table summarizing all major schemes – both historical (MEIS, SEIS) and current (RoDTEP, EPCG, Advance Authorization, DFIA).

For each scheme, note its full name, primary objective, type of benefit (e.g., duty credit scrip, duty exemption), key eligibility criteria, and its current status (active/discontinued). Secondly, pay close attention to the nodal ministry, which is primarily the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry.

Thirdly, understand the core concepts like 'duty drawback,' 'duty credit scrips,' 'export obligation,' and 'deemed exports' with clear definitions. Fourthly, dedicate significant time to the WTO compliance aspect, specifically the Agreement on Subsidies and Countervailing Measures (ASCM) and why schemes like MEIS/SEIS were deemed non-compliant.

Understand the fundamental difference between an 'export subsidy' and a 'remission of taxes' (the basis of RoDTEP). Finally, stay updated with recent policy changes, any new schemes introduced, or modifications to existing ones, especially those mentioned in the Economic Survey or Budget documents.

Practice MCQs that test scheme names, their features, and the reasons for policy shifts, paying attention to subtle differences and common traps.