India is an emerging player in the global economy and the foreign policies formulated by the government has made a significant effect on the foreign investments made in and by India. For the success in the economic development, India has to adopt a set of policies after the expiry of every 5 years known as new foreign trade policy.<\/p>\n\n\n\n
The article, talks about the new foreign trade policy 2021-26.<\/p>\n\n\n\n
The meeting of the committee of the Ministry of Commerce & Industry<\/strong>[1]<\/strong><\/a><\/sup> was held on 12th<\/sup> January, 2021 on the subject of ‘New Foreign Trade Policy’ for the tenure of 2021 – 2026.<\/p>\n\n\n\n The Minister of State for Commerce & Industry Mr. Hardeep Singh Puri, chaired the meeting and Hon’ble Members of Parliament & senior officers of the Ministry attended the meeting.<\/p>\n\n\n\n The main mission of the new foreign trade policy is to make India a leader in the International Trade in the next 5 years, i.e. 2021 – 26.<\/p>\n\n\n\n The FTP outlines the government strategies to promote export of goods to increase the economic growth in the country.<\/p>\n\n\n\n The foreign trade policy in India is basically a set of guidelines for the import & export of goods & services. The policy is formulated by the DGFT (Directorate General of Foreign Trade), which is the governing body to promote & facilitate the exports & imports of the goods under the Ministry of Commerce & Industry.<\/p>\n\n\n\n The policy is notified for the period of 5 years and is updated on 31st<\/sup> March every year and comes to effect on 1st<\/sup> April. Though the policy covers the aspect of imports & exports<\/a><\/strong>, its primary aim is to facilitate trade by reducing the cost of transaction & time & by making the Indian exports competitive globally.<\/p>\n\n\n\n The new foreign trade policy aims to:<\/em><\/strong><\/p>\n\n\n\n A new foreign trade policy is formulated after the consideration on the inputs by traders, trades associations, members of parliament.<\/p>\n\n\n\n Some key expectations are:<\/em><\/strong><\/p>\n\n\n\n The government has introduced the Remission of Duties or Taxes on Export Products (RoDTEP<\/a><\/strong>) to end the need of the hour, i.e. WTO compliant tax benefits. The RoDTEP became effective from 1st<\/sup> January, 2021 and it replaces MEIS but the rates & conditions of the scheme is yet to be announced.<\/p>\n\n\n\n The trade infrastructure needs to be developed and thus, the government has introduced a scheme in 2017 to develop the trade infrastructure for the export sector. The scheme was introduced for a period of 3 years.<\/p>\n\n\n\n The process of digitalisation makes the whole process of import & export paperless and online. This helps in bringing a transparency in the trade happens globally. Thus, the policy must be formulated to make the whole process digitalised.<\/p>\n\n\n\n There is a problem that goes way back, related to lending money to MSMEs because they lack adequate collateral. There is a demand of credit access from the exporters especially MSMEs<\/a><\/strong>. This policy can help to start or open up the alternate avenues and the advisory group has advised to increase the borrowing limits at the Export Import Bank of India.<\/p>\n\n\n\n The government must support in respect of easing & lowering the tax rates. The confederation of Indian Industry proposes to simplify the import duty structure, i.e., high duties on finished goods & lower or minimal duties on the raw materials.<\/p>\n\n\n\n India’s import community has a wish list that includes permission to import capital goods on self – certification basis<\/a> & to import prohibited goods with the approval of Central Government or Inter – Ministerial Standing Committee.<\/p>\n\n\n\n There are many exporters who lacks awareness in respect of trade opportunities. The Indian government must formulate policy in such a way that it consists of workshops & awareness programs to make the exporters aware about the international laws, global markets, etc.<\/p>\n\n\n\n With the help for new foreign trade policy, it can ensure a stable demand & supply that helps in economic growth. The policy also allows the country to increase in import & export in the country and to makes India’s position in International market<\/a>.<\/p>\n\n\n\nWhat is India’s foreign trade policy?<\/h2>\n\n\n\n
Aim of new foreign trade policy<\/h2>\n\n\n\n
What are the expectations from new foreign trade policy 2021 – 26?<\/h2>\n\n\n\n
Conclusion<\/h2>\n\n\n\n