Duty-Free Tariff Preference (DFTP) Scheme

Duty-Free Tariff Preference (DFTP) Scheme Latest News

Recently, the World Trade Organization credits India’s Duty-Free Tariff Preference (DFTP) scheme for boosting exports from the poorest nation.

About Duty-Free Tariff Preference (DFTP) Scheme

• It was initiated in 2008 and offers Least Developed Countries (LDCs) preferential access to the Indian market.
• The DFTP scheme aims to boost LDCs’ economic growth, diversify exports, and strengthen trade relations.
• Objective: The objective of the scheme for LDCs is grant of tariff preferences on the exports of the Least Developed Countries on imports to India.

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Key Features of India’s DFTP Scheme

• Duty-Free Access to Indian Market:  Under the DFTP scheme, products from LDCs are eligible for duty-free access to the Indian market.
• Eligible Countries: It is available to all LDCs recognized by the United Nations. India offers this preferential access to around 48 countries classified as LDCs, including countries in Africa, Asia, and the Pacific.
• Eligible Products: A wide range of products from LDCs can benefit from the DFTP scheme. These include:
  • Agricultural products: Fruits, vegetables, spices, and grains.
  • Textiles and garments: Clothing, fabrics, and textiles made in LDCs.
  • Handicrafts and traditional goods: Handwoven textiles, jewelry, and locally produced crafts.
  • Leather goods: Leather garments, bags, and accessories.
  • Minerals and metals: Products like gold, diamonds, and other raw materials.

Source: LM