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

• The Duty-Free Tariff Preference (DFTP) scheme is a unilateral, non-reciprocal trade initiative by India that offers preferential and duty-free access to its market for exports from Least Developed Countries (LDCs). 
• Announced by India in 2008, the scheme aligns with the World Trade Organization (WTO) Ministerial Declaration of 2005, which called on developed and advanced developing countries to offer such access to LDCs.
• India was the first developing country to implement such a program. 

Objectives

• Support economic growth in LDCs: The DFTP scheme helps bolster the economies of the world's poorest nations.
• Diversify exports: It encourages LDCs to broaden their export base and develop new industries beyond a few key commodities.
• Strengthen trade relations: The initiative aims to enhance India's economic and diplomatic ties with LDC partners.
• Promote inclusive development: By integrating vulnerable economies into the global trading system, the scheme contributes to global development goals. 

Key features

• Broad market access: The scheme provides duty-free access to approximately 98.2% of India's tariff lines, with only about 1.8% of product categories still subject to regular duties.
• Wide product coverage: A diverse range of products are eligible for preferential treatment, including:
  • Agricultural products: Fruits, vegetables, spices, and grains
  • Textiles and garments: Clothing, fabrics, and handwoven materials
  • Handicrafts: Jewelry and local crafts
  • Leather goods: Bags and accessories
  • Minerals and metals: Raw materials, gems, and metals

• Comprehensive support: India provides technical assistance and training to help LDC exporters meet quality standards and improve their export capabilities.
• Requirements for beneficiaries: To receive benefits, eligible LDCs must submit a letter of intent and provide a certificate of origin with each consignment to prove that the goods originated in the LDC. 

Impact and recognition

• Increased exports: The scheme has resulted in a steady rise in exports from LDCs to India, with a 2017 WTO report noting that India offered more extensive duty-free market access to LDCs than major economies like China or the EU.
• International recognition: The WTO has credited India's DFTP scheme as a successful model for South-South trade cooperation and inclusive development. 

Latest Updates and Key Features (October 2025)

• The World Trade Organization (WTO) recently credited India’s DFTP scheme for significantly boosting exports from LDCs, enabling better integration of these countries into the global trading system.
• India offers duty-free access to about 48 LDCs from Africa, Asia, and the Pacific, covering approximately 94-98% of India's tariff lines under the scheme.
• Products benefiting from this scheme include agricultural goods (fruits, vegetables, spices, grains), textiles and garments, handicrafts, leather goods, and minerals/metals like gold and diamonds.
• India provides higher preferential margins on agricultural products (up to about 30%) and an average tariff reduction of about 15% across all products under the scheme.
• The DFTP scheme enhances South-South cooperation by supporting developing countries and fostering trade inclusivity.
• India has become one of the top five export destinations for products from LDCs under this scheme.
• The scheme offers technical assistance and training programs to help LDC exporters improve product quality and competitiveness.

Recent clarifications and expansions include changes to rules of origin criteria, certificate of origin format, and simplified procedures to improve market access.
India’s DFTP scheme is considered more generous in terms of tariff coverage compared to similar preferential schemes by China or the European Union, positioning India as a key partner in global development and trade support for the world's poorest countries.

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