As per Schedule – 2 of Indian Trade Clarification (Harmonised System) Export Policy, 2018, all commodities / items have been categorized into three categories namely (i) free (ii) prohibited; and (iii) restricted. Barring a few items, all items are free for export. However, Free exportability is subject to any other law for time being in force. While prohibited items are not allowed for export, items which fall under restricted category are permitted for export subject to export authorization issued by Directorate General of Foreign Trade.

Export could be made to any country, except as restricted under the Foreign Trade Policy 2015-20, as per international obligations/United Nations Security Council embargo.

India has signed Free Trade Agreements (FTA) with a number of trading partners, including small countries. These agreements provide opportunities for exports to these trading partners at preferential duties. The annual exports to the FTA partners, including small countries, over the last 3 years, are given in the Annexure.

India’s Exports to the FTA partners, including small countries, over the last 3 years

(in USD billion)

FTA partners	2016-17	2017-2018	2018-2019
Association of South East Asian Nations (ASEAN)	31.0	34.2	37.5
Japan	3.8	4.7	4.9
South Korea	4.2	4.5	4.7
Malaysia	5.2	5.7	6.4
Singapore	9.6	10.2	11.6
Thailand	3.1	3.7	4.4
Bhutan	0.5	0.5	0.7
Nepal	5.5	6.6	7.8
Sri Lanka	3.9	4.5	4.7
South Asia Free Trade Area (SAFTA)	19.2	23.1	25.3

This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Lok Sabha today.

Export categorisation defines free, restricted, and prohibited exports, with restricted shipments requiring DGFT authorization under trade policy. Export categorisation under Schedule-2 divides commodities into free, prohibited and restricted. Free exports remain subject to other laws; prohibited items are barred; restricted items require export authorisation from the Directorate General of Foreign Trade. Exports are allowed except as limited by the Foreign Trade Policy 2015-20 or international obligations.