Foreign Trade Policy: Government announces new policy to be rolled out from April 2021
The New Foreign Trade Policy 2021-2026 will strive to make India a leader in international trade.
The Union Ministry of Commerce and Industry announced on January 12, 2021, that the New Foreign Trade Policy 2021-2026 of India which is under formulation will come into effect on April 1, 2021. The policy will be implemented for five years and will strive to make India a leader in international trade.
As per the statement by the Commerce Ministry, the Parliamentary Consultative Committee of the Commerce and Industry ministry held a meeting on the subject ‘New Foreign Trade Policy 2021-2026’. The meeting was chaired by Hardeep Singh Puri, Minister of State for Commerce and Industry, and was attended by the senior officers and MPs of the ministry.
The new policy which will come into effect from April 1 for five years will aim at channelizing the synergies gained through merchandise and services exports for employment and growth with a goal of making India a USD 5 Trillion economy.
Districts Exports Hubs initiative:
As per the Commerce Ministry, the District Export Hubs Initiative will be forming a significant component of the new Foreign Trade Policy.
The Commerce department through the Regional Authorities of Directorate General of Foreign Trade- DGFT had engaged with the governments of State and UTs for taking forward this initiative in the districts. The implementation of the initiative will be in a phased manner, with an objective of mobilizing the potential of each district of India for achieving its potential as an export hub.
• Improvements in the operations of the domestic services and manufacturing sectors along with infrastructure support by the government will result in correcting the imbalances within India and will feed into the trade policy.
• For the formulation of the policy, meetings have been held with the stakeholders. A Board of Trade meeting also took place in December 2020 where the state governments and other stakeholders provided their inputs.
• Further meetings were also held with the Industry Associations, Chambers of Commerce, and Export Promotion Councils for their inputs.
• For inviting suggestions from various stakeholders, a Trade notice was issued and more than 2000 suggestions were received. All the suggestions were also examined while formulating the new policy.
How new FTP plans on making India a USD 5 Trillion economy?
A key component for attaining the mark of USD 5 trillion in an expedited time frame will be boosting exports, which will include both services and merchandise.
This will be done by systematically addressing the overseas and domestic constraints that are related to the regulatory, policy, and operational framework to lower the transaction costs and enhancing the ease of doing business. It will also create a low-cost operating environment with the help of efficient utility and logistical infrastructure.