Chapter 5 of the Foreign trade policy (FTP) is dedicated to the EPCG scheme. The EPCG scheme is a popular scheme that exporters use to import their machinery which are in fact their assets. The scheme aims at facilitating/boosting import of capital goods to enhance India’s position in the international export market. Makes business sense, isn’t it? Ever since the scheme was introduced, it has given a fillip to India’s exports.
The chapter explains the nitty-gritties of the EPCG scheme that includes its purview/scope and sectors that are out of the reach of this scheme. It also explains the export obligation and some other areas.