DGFT & Trade Policy

The policy backbone

The Directorate General of Foreign Trade (DGFT) administers India's Foreign Trade Policy (FTP) — the rulebook governing what can be traded, under what conditions, and which incentives apply.

Trade classifications

Goods are categorised as free (freely importable/exportable), restricted (need a licence/authorisation), prohibited (banned), or STE (canalised through State Trading Enterprises). The ITC-HS schedules specify the status of each item, which exporters/importers must check before trading.

DGFT's tools

DGFT issues authorisations (Advance Authorisation, EPCG), the IEC, RCMC (Registration-cum-Membership Certificate from Export Promotion Councils, needed for many benefits), and public/policy notices updating rules. Much of this is now digital and paperless on the DGFT portal.

Compliance and remedies

Exporters must meet export obligations under schemes, file required returns, and avoid restricted-goods violations. Disputes and policy relaxations can be sought via DGFT's Policy Relaxation Committee and appellate channels. Staying current with FTP amendments and notifications is essential, as policy shifts can change duties, incentives and eligibility overnight.