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The World Trade Organization (WTO) has recently credited India’s Duty-Free Tariff Preference (DFTP) Scheme for significantly boosting exports from Least Developed Countries (LDCs). India has surpassed China and the European Union (EU) in providing duty-free market access to the world’s poorest economies, strengthening South-South trade cooperation.

About the DFTP Scheme

• Launched: 2008
• Implementing Agency: Ministry of Commerce and Industry, Government of India
• Framework: In line with the WTO’s Hong Kong Ministerial Declaration (2005), which encouraged developed and developing members to provide duty-free and quota-free (DFQF) market access to LDCs.
• Objective:To promote trade-led economic growth of LDCs by granting preferential tariff concessions on their exports to India.

Key Features

• Comprehensive Duty-Free Access
  • Provides duty-free or preferential tariff access to a large range of products exported from LDCs to India.
  • Nearly 98% of India’s tariff lines are now covered under the scheme.
• Eligible Countries
  • Open to all LDCs recognized by the United Nations.
  • Currently, around 48 countries in Africa, Asia, and the Pacific benefit from it.
• Product Coverage
  • Agricultural goods: Fruits, vegetables, grains, spices, coffee, and tea.
  • Textiles & garments: Clothing, fabrics, and handwoven textiles.
  • Leather & handicrafts: Bags, jewelry, and artisan products.
  • Minerals & metals: Including raw materials like gold and diamonds.
  • Processed foods and beverages: Key export commodities for African and Asian LDCs.
• Trade Facilitation: Simplified customs procedures and transparent rules of origin help integrate LDC exporters into global value chains (GVCs).

Recent WTO Recognition

According to the WTO, India now provides one of the widest duty-free market access schemes among developing economies—outperforming China and the EU in terms of product and tariff-line coverage.
This initiative has:

• Enhanced export diversification in LDCs.
• Strengthened India’s trade and diplomatic engagement with Africa and other developing regions.
• Supported inclusive global trade, aligning with the UN Sustainable Development Goals (SDG 17: Partnerships for the Goals).

Significance

• For LDCs: Encourages industrial growth, employment, and export competitiveness.
• For India: Reinforces its image as a responsible development partner and a leader in South-South cooperation.
• For Global Trade: Promotes equity by integrating vulnerable economies into mainstream trade flows.