Foreign Trade Policy

2021-2026
BY
ANSAN M.A
Contents

 Introduction
 What is India’s Foreign Trade Policy
 History of Foreign Trade Policy
 Objective of Foreign Trade Policy
 Aim of new Foreign Trade Policy
 Expectations from new Foreign Trade Policy 2021-2026
 Conclusion
Introduction
 The committee meeting of the Ministry of Commerce & Industry
was held on 12th January 2021 on the subject of ‘New Foreign Trade
Policy’ for the tenure of 2021-2026
 The Minister of state for Commerce & Industry chaired the meeting
and Hon’ble members of parliament and senior officers of the
Ministry attended the meeting
 The main mission of new Foreign Trade Policy is to make India a
leader in the international trade in the next 5 years ie 2021-2026
 The FTP outlines the government strategies to promote export of
goods to increase the economic growth in the country
What is India’s foreign trade policy?
It is also known as EXIM Policy. The foreign trade policy in India is
basically a set of guidelines for the import & export of goods and
services. The policy is formulated by the DGFT. Which is the
governing body to promote & facilitating the export and import of
goods under the Ministry of Commerce and Industry.
The policy is notified for the period of 5 years and is updated on 31st
March every year and comes to effect on 1st April. Through the policy
covers the aspects of imports and exports, it’s primary aim to facilitate
trade by reducing the cost of transaction and time and by making the
Indian exports competitive globally.
History of foreign trade policy

 In the year 1962 the Government of India selected a special EXIM

Policy committee to review the government preceding policies of
export import
 The committee was afterward permitted by the Government of India
Mr.V.P.Singh the Commerce Minister and pronounced the new
EXIM Policy of India on 12th of April 1985
 Primarily the export –import policy of India was launched for the
period of three years with intention to boost the export business in
India
Objectives of foreign trade policy

 To establish the framework for globalisation

 To promote the productivity, competitiveness of India industry
 To encourage the attainment of high & internationally accepted
standards of quality
 To generate new employment
 To provide quality consumer products at reasonable prices
Aim of new Foreign Trade Policy
 Boost the export of both services & goods
 Help the district to reach its potential as an Export hub. The
commerce department through DGFT engage with state government
and union Territories for the implementation of the initiatives.
 Improvise the infrastructure for the operation of domestic services &
manufacturing sectors to correct the trade imbalance in India.
 Regular meeting will be held with the chamber of commerce
industry association and export promotion council to take their
inputs.
Expectations from new foreign trade
policy 2021 -2026
 WTO complaint tax incentives :- The government has introduced the
remission of duties or taxes on export products.
 Infrastructure upgrade :- The trade infrastructure need to be developed and
thus the government has introduced a scheme in 2017 to develop the trade
infrastructure for the export sector.
 Digitalisation :- The process of digitalisation make the whole process of
import & export papers and online. This helps in bringing a transparency in
the happens globally.
 Tax breaks :- The government must support in respect of easing & lowering
the tax rates. The confederation of Indian industry prpposes to simplify the
duty structure. Ie high duty to finished good and lower duty to raw materials.
 Import wish list :- India’s import community has a wish list that
include permission to import capital goods on self certification basis
& to import prohibited goods with the approval of Central
Government or Inter- Ministerial standing committee.
 Export awareness :- There are many exporters who lacks awareness
in respect of trade opportunities. The Indian government must
formulate and awareness programs to make the exporters aware
about the international laws, global markets etc.
Conclusion

With the help of new Foreign Trade Policy it can ensure a stable
demand & supply that helps in economic growth. The policy also allow
the country to increase in imports & exports in the country and to make
India’s position in International markets.