India’s Duty-Free Tariff Preference (DFTP) Scheme for LDCs
According to a recent WTO report, India has emerged as a leading developing economy partner for Least Developed Countries (LDCs), offering more extensive duty-free market access than China or the EU.
Launched in 2008, the DFTP Scheme aims to provide preferential market access to LDCs, in line with the WTO Hong Kong Ministerial Declaration (2005). India was the first developing country to implement such a programme.
Key Features:
Coverage: About 98.2% of tariff lines enjoy duty-free access; only 1.8% face normal duties.
Eligibility: Open to all UN-designated LDCs (around 48 countries across Africa, Asia, and the Pacific).
Products Covered: Includes agricultural goods, textiles, handicrafts, leather items, minerals, and metals.
Support Measures: Technical assistance and training to enhance export quality and standards.
Benefits to LDCs:
- Expanded export opportunities and trade revenues.
- Boost to economic growth, employment, and poverty reduction.
- Encourages export diversification and capacity-building through technology and skill development.