{"id":21224,"date":"2024-01-05T12:01:09","date_gmt":"2024-01-05T12:01:09","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=21224"},"modified":"2024-03-18T11:08:36","modified_gmt":"2024-03-18T11:08:36","slug":"upsc-ncert-notes-indian-economy-foreign-trade-and-agreement","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/","title":{"rendered":"UPSC NCERT Notes &#8211; Indian Economy &#8211; Foreign Trade and Agreement"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-economy?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Blog+Economy\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17.png\" alt=\"\" class=\"wp-image-42386\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure>\n\n\n\n<p>For UPSC aspirants, thorough preparation is crucial, especially when it comes to understanding the nuances of the Indian Economy, particularly the intricate domain of Foreign Trade and Agreements. The NCERT notes on the Indian Economy provide a comprehensive overview, offering invaluable insights into the dynamics of international trade, economic agreements, and their impact on India&#8217;s economic landscape. These notes serve as an indispensable resource, elucidating key concepts, policies, and developments shaping India&#8217;s engagement with the global economy. Delving into topics such as trade policies, balance of payments, WTO agreements, and regional economic groupings, they equip aspirants with a solid foundation to navigate the complexities of foreign trade and agreements, essential for success in the UPSC examination.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69d769d945d13\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d769d945d13\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Introduction_to_Foreign_Trade\" title=\"Introduction to Foreign Trade\">Introduction to Foreign Trade<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Indias_Foreign_Trade_Position\" title=\"India&#8217;s Foreign Trade Position\">India&#8217;s Foreign Trade Position<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#India_Foreign_Trade_Status\" title=\"India Foreign Trade Status\">India Foreign Trade Status<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Direction_of_Indias_Foreign_Trade\" title=\"Direction of India&#8217;s Foreign Trade\">Direction of India&#8217;s Foreign Trade<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Indias_Trading\" title=\"India\u2019s Trading\">India\u2019s Trading<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Structure_of_Indian_Foreign_Trades\" title=\"Structure of Indian Foreign Trades\">Structure of Indian Foreign Trades<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Indian_Exports\" title=\"Indian Exports\">Indian Exports<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Top_Export_Destinations_2021-22_in_Share\" title=\"Top Export Destinations (2021-22 in % Share)\">Top Export Destinations (2021-22 in % Share)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Indian_Imports\" title=\"Indian Imports\">Indian Imports<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Top_Import_Destinations_2021-22_in_Share\" title=\"Top Import Destinations (2021-22 in % Share)\">Top Import Destinations (2021-22 in % Share)<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Trade_Composition\" title=\"Trade Composition\">Trade Composition<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Export_Composition\" title=\"Export Composition\">Export Composition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Import_Composition\" title=\"Import Composition\">Import Composition<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Overall_Trade_Balance\" title=\"Overall Trade Balance\">Overall Trade Balance<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Import_Cover\" title=\"Import Cover\">Import Cover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Export_Promotion\" title=\"Export Promotion\">Export Promotion<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Measures_for_Export_Promotion\" title=\"Measures for Export Promotion\">Measures for Export Promotion<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Major_Initiatives_for_Export_Boost\" title=\"Major Initiatives for Export Boost\">Major Initiatives for Export Boost<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Remission_of_Duties_and_Taxes_on_Products_RoDTEP\" title=\"Remission of Duties and Taxes on Products (RoDTEP):\">Remission of Duties and Taxes on Products (RoDTEP):<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Developing_Districts_as_Export_Hubs\" title=\"Developing Districts as Export Hubs:\">Developing Districts as Export Hubs:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Production-Linked_Incentive_PLI_Scheme\" title=\"Production-Linked Incentive (PLI) Scheme:\">Production-Linked Incentive (PLI) Scheme:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Electronic_Platform_for_Preferential_Certificate_of_Origin_COO\" title=\"Electronic Platform for Preferential Certificate of Origin (COO):\">Electronic Platform for Preferential Certificate of Origin (COO):<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Infusion_of_Capital_in_EXIM_Bank\" title=\"Infusion of Capital in EXIM Bank:\">Infusion of Capital in EXIM Bank:<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Other_Export_Promotion_Schemes\" title=\"Other Export Promotion Schemes:\">Other Export Promotion Schemes:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Pradhan_Mantri_Gati_Shakti_National_Master_Plan_NMP\" title=\"Pradhan Mantri Gati Shakti National Master Plan (NMP)\">Pradhan Mantri Gati Shakti National Master Plan (NMP)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Other_Initiatives_to_Improve_Logistics_Ecosystem\" title=\"Other Initiatives to Improve Logistics Ecosystem\">Other Initiatives to Improve Logistics Ecosystem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Export_Processing_Zone_EPZ\" title=\"Export Processing Zone (EPZ)\">Export Processing Zone (EPZ)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Special_Economic_Zone_SEZ\" title=\"Special Economic Zone (SEZ)\">Special Economic Zone (SEZ)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Agri_Export_Zones_AEZs\" title=\"Agri Export Zones (AEZs)\">Agri Export Zones (AEZs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Foreign_Trade_Policy_FTP\" title=\"Foreign Trade Policy (FTP)\">Foreign Trade Policy (FTP)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Foreign_Trade_Policy_Formulation_in_India\" title=\"Foreign Trade Policy Formulation in India\">Foreign Trade Policy Formulation in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Foreign_Trade_Policy_2023-28\" title=\"Foreign Trade Policy 2023-28\">Foreign Trade Policy 2023-28<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Key_Approach_of_FTP_2023-28_Four_Pillars\" title=\"Key Approach of FTP 2023-28: Four Pillars\">Key Approach of FTP 2023-28: Four Pillars<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Salient_Features_of_FTP_2023-28\" title=\"Salient Features of FTP 2023-28\">Salient Features of FTP 2023-28<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Process_of_Re-Engineering_and_Automation\" title=\"Process of Re-Engineering and Automation:\">Process of Re-Engineering and Automation:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Towns_of_Export_Excellence_TEE\" title=\"Towns of Export Excellence (TEE):\">Towns of Export Excellence (TEE):<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Recognition_of_Exporters\" title=\"Recognition of Exporters:\">Recognition of Exporters:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Promoting_Export_from_the_Districts\" title=\"Promoting Export from the Districts:\">Promoting Export from the Districts:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Strengthening_SCOMET_Policy\" title=\"Strengthening SCOMET Policy\">Strengthening SCOMET Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Boosting_E-Commerce_Exports\" title=\"Boosting E-Commerce Exports\">Boosting E-Commerce Exports<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Enhancements_Under_EPCG_Scheme\" title=\"Enhancements Under (EPCG) Scheme\">Enhancements Under (EPCG) Scheme<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Advancements_in_the_Advance_Authorisation_Scheme\" title=\"Advancements in the Advance Authorisation Scheme\">Advancements in the Advance Authorisation Scheme<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Amnesty_Scheme_for_Exporters\" title=\"Amnesty Scheme for Exporters\">Amnesty Scheme for Exporters<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Service_Exports_from_India_Scheme_SEIS\" title=\"Service Exports from India Scheme (SEIS)\">Service Exports from India Scheme (SEIS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Preferential_Trade_Agreement_PTA\" title=\"Preferential Trade Agreement (PTA)\">Preferential Trade Agreement (PTA)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Free_Trade_Agreement_FTA\" title=\"Free Trade Agreement (FTA)\">Free Trade Agreement (FTA)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Trading_Blocks\" title=\"Trading Blocks\">Trading Blocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Regional_Comprehensive_Economic_Partnership_RCEP\" title=\"Regional Comprehensive Economic Partnership (RCEP)\">Regional Comprehensive Economic Partnership (RCEP)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Bay_of_Bengal_Initiative_for_Multi-Sectoral_Technical_and_Economic_Cooperation_BIMSTEC\" title=\"Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)\">Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#South_Asian_Free_Trade_Agreement_SAFTA\" title=\"South Asian Free Trade Agreement (SAFTA)\">South Asian Free Trade Agreement (SAFTA)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Balance_of_Trade\" title=\"Balance of Trade\">Balance of Trade<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#In_equilibrium_three_scenarios_may_unfold\" title=\"In equilibrium, three scenarios may unfold:\">In equilibrium, three scenarios may unfold:<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Prelims_Facts\" title=\"Prelims Facts\">Prelims Facts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#UPSC_NCERT_Practice_Questions\" title=\"UPSC NCERT Practice Questions\">UPSC NCERT Practice Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-55\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#1_Name_of_the_countries_in_which_India_has_a_negative_bilateral_trade_balance\" title=\"1. Name of the countries in which India has a negative bilateral trade balance.\">1. Name of the countries in which India has a negative bilateral trade balance.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-56\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#2_Consider_the_following_statements_about_Indias_New_Foreign_Trade_Policy_FTP_UPPSC_Pr_2018\" title=\"2. Consider the following statements about India&#8217;s New Foreign Trade Policy (FTP), UPPSC (Pr) 2018\">2. Consider the following statements about India&#8217;s New Foreign Trade Policy (FTP), UPPSC (Pr) 2018<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-57\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#3_Measures_to_reduce_imports_will\" title=\"3. Measures to reduce imports will\">3. Measures to reduce imports will<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-58\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#4_Which_one_of_the_following_items_has_gained_the_highest_growth_rate_in_the_import_composition_of_the_Indian_economy_in_the_last_decade\" title=\"4. Which one of the following items has gained the highest growth rate in the import composition of the Indian economy in the last decade?\">4. Which one of the following items has gained the highest growth rate in the import composition of the Indian economy in the last decade?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-59\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#5_Five_different_earlier_schemes_have_been_merged_into_a_single_scheme_namely\" title=\"5 Five different earlier schemes have been merged into a single scheme, namely\">5 Five different earlier schemes have been merged into a single scheme, namely<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-60\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#6_International_Trade_is_most_likely_to_generate_short-term_unemployment_in\" title=\"6. International Trade is most likely to generate short-term unemployment in\">6. International Trade is most likely to generate short-term unemployment in<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-61\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#7_Free_traders_maintain_that_an_open_economy_is_advantageous_in_that_it_provides_all_the_following_except\" title=\"7. Free traders maintain that an open economy is advantageous in that it provides all the following except\">7. Free traders maintain that an open economy is advantageous in that it provides all the following except<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-62\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#8_Terms_of_trade_between_two_countries_refer_to_a_ratio_of_%E2%80%A6%E2%80%A6\" title=\"8. Terms of trade between two countries refer to a ratio of \u2026\u2026..\">8. Terms of trade between two countries refer to a ratio of \u2026\u2026..<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-63\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#9_Consider_the_following\" title=\"9. Consider the following.\">9. Consider the following.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-64\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#10_Which_one_of_the_following_percentages_is_the_share_of_the_Indian_export_in_the_International_Trade\" title=\"10 . Which one of the following percentages is the share of the Indian export in the International Trade?\">10 . Which one of the following percentages is the share of the Indian export in the International Trade?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-65\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#11_Special_Economic_Zone_SEZ_Act_became_effective_in_UPPSC_Prej_2010\" title=\"11. Special Economic Zone (SEZ) Act became effective in UPPSC Prej 2010\">11. Special Economic Zone (SEZ) Act became effective in UPPSC Prej 2010<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-66\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#12_In_India_the_Special_Economic_Zone_SEZ_policy_was_announced_in_UPPSC_Main_2014_17\" title=\"12. In India, the Special Economic Zone (SEZ) policy was announced in&nbsp; UPPSC (Main) 2014, 17\">12. In India, the Special Economic Zone (SEZ) policy was announced in&nbsp; UPPSC (Main) 2014, 17<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-67\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#13_A_Free_Trade_Zone_FTZ_is_one_where\" title=\"13. A Free Trade Zone (FTZ) is one where\">13. A Free Trade Zone (FTZ) is one where<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-68\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#14_Free_Trade_Policy_FTP_refers_to_a_policy_where_there_is_UPPCS_Mains_2005\" title=\"14. Free Trade Policy (FTP) refers to a policy where there is UPPCS (Mains) 2005\">14. Free Trade Policy (FTP) refers to a policy where there is UPPCS (Mains) 2005<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-69\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#15_The_problem_of_international_cash_is_related_to_the_non-availability_of_which_of_the_following\" title=\"15. The problem of international cash is related to the non-availability of which of the following?\">15. The problem of international cash is related to the non-availability of which of the following?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-70\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#16_Consider_the_following_statements_about_the_recent_Foreign_Trade_Policy_FTP\" title=\"16. Consider the following statements about the recent Foreign Trade Policy (FTP).\">16. Consider the following statements about the recent Foreign Trade Policy (FTP).<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-71\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Know_Right_Answer\" title=\"Know Right Answer\">Know Right Answer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-72\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-73\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#FAQ_What_is_the_purpose_of_international_trade_agreements\" title=\"FAQ: What is the purpose of international trade agreements?\">FAQ: What is the purpose of international trade agreements?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-74\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#FAQ_How_do_trade_agreements_benefit_participating_countries\" title=\"FAQ: How do trade agreements benefit participating countries?\">FAQ: How do trade agreements benefit participating countries?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-75\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#FAQ_Can_international_trade_agreements_lead_to_job_displacement\" title=\"FAQ: Can international trade agreements lead to job displacement?\">FAQ: Can international trade agreements lead to job displacement?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-76\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-77\" href=\"https:\/\/edukemy.com\/blog\/upsc-ncert-notes-indian-economy-foreign-trade-and-agreement\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211;\u00a0here\">Visit our YouTube Channel &#8211;\u00a0here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction_to_Foreign_Trade\"><\/span>Introduction to Foreign Trade<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Foreign trade plays a pivotal role in the economic landscape of every country. It enables a nation to optimize its natural resources, export surplus production, and acquire technical expertise. Industrialization becomes achievable through the importation of essential capital, machinery, and raw materials from more advanced and industrialized nations.<\/li><li>Effective control of foreign trade can positively influence employment, output, prices, industrialization, and overall economic development.<\/li><li>According to the Economic Survey 2022-23, India&#8217;s top five export destinations include the USA, UAE, China, Bangladesh, and Hong Kong. In terms of imports, the top five destinations are China, the United States of America, the UAE, Switzerland, and Saudi Arabia. India has maintained a positive trade balance with the US, ranking among its top trading partners.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indias_Foreign_Trade_Position\"><\/span>India&#8217;s Foreign Trade Position<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>India&#8217;s engagement in foreign trade witnessed a continuous decline until 1980. However, since 2001, there has been a consistent improvement:<\/li><li>As per the WTO ranking in 2021, India&#8217;s share of merchandise imports and exports among developing countries to the rest of the world slipped to the fourth and eighth positions in 2020.<\/li><li>In 2019, India accounted for approximately 1.71% of the total global merchandise exports.&nbsp;<\/li><li>According to the Be <strong>Survey 2022-23<\/strong>, India&#8217;s major trading partners causing a negative bilateral trade balance are China, Switzerland, Iraq, Saudi Arabia, and the UAE.<\/li><li>Conversely, the top five countries contributing to India&#8217;s surplus trade balance are the USA, Bangladesh, Nepal, Turkey, and the Netherlands. India faced its largest trade deficit with China at -43.4, while its exports reached 422.0 billion in the fiscal year 2022.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"India_Foreign_Trade_Status\"><\/span>India Foreign Trade Status<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>As of 2021, India ranked 14th in total exports and 11th in total imports, according to the <strong>Economic Complexity Index.&nbsp;<\/strong><\/li><li>Despite its foreign reserves surpassing US$ 600 billion in 2023, the improvement in the <strong>Balance of Payments <\/strong>was confined to the current account deficit.<\/li><li>The RBI reported a current account deficit of 2.7% of GDP from April-December 2022, compared to 1.1% in the same period the previous year.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Direction_of_Indias_Foreign_Trade\"><\/span>Direction of India&#8217;s Foreign Trade<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>India&#8217;s foreign trade direction has shifted over the years, with America emerging as the largest trading partner. Regionally, Asia-Oceania countries dominate India&#8217;s foreign trade, and the European Union stands as the largest trading partner group, followed by ASEAN.<\/li><li>The major importers for India include China (15.5%), UAE (7.3%), USA (7.2%), Saudi Arabia (5.0%), and Iraq (4.994%). On the export side, the top countries are the USA (18.4%), UAE (6.6%), China (5.9%), Bangladesh (3.5%), and Hong Kong (2.85%).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indias_Trading\"><\/span>India\u2019s Trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The Economic Survey 2022-23 indicates that China, Switzerland, Saudi Arabia, Iraq, and South Korea are the top five countries with which India has a negative bilateral trade balance. On the other hand, the US, Bangladesh, Nepal, and the UK are the top five countries contributing to India&#8217;s trade balance surplus.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Structure_of_Indian_Foreign_Trades\"><\/span>Structure of Indian Foreign Trades<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The following is a systematic discussion of India&#8217;s import-export<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indian_Exports\"><\/span>Indian Exports<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Despite challenges in tourism, India&#8217;s net income from services grew significantly in April-December 2021, driven by robust software and business income. In the fiscal year 2021-22, India&#8217;s overall exports (Merchandise and Services) are estimated at USD 676.5 billion, with merchandise contributing USD 422 billion and service exports USD 254.5 billion. Overall imports for the same period are estimated to be USD 495.83 billion.<\/li><li>The structure of Indian foreign trade involves a systematic discussion of both imports and exports. Exportation involves providing goods or services from domestic producers to foreign consumers. While traditional exports required customs involvement, the rise of small trades through platforms like <strong>Amazon and eBay<\/strong> has reduced such bureaucratic hurdles, although legal restrictions still apply.<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_Export_Destinations_2021-22_in_Share\"><\/span>Top Export Destinations (2021-22 in % Share)<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table><tbody><tr><td><strong>Country<\/strong><\/td><td><strong>% Share<\/strong><\/td><\/tr><tr><td>United Arab Emirates<\/td><td>18.4<\/td><\/tr><tr><td>China<\/td><td>5.9<\/td><\/tr><tr><td>Bangladesh<\/td><td>3.5<\/td><\/tr><tr><td>Hong Kong<\/td><td>2.8<\/td><\/tr><tr><td>Singapore<\/td><td>2.8<\/td><\/tr><tr><td>UK<\/td><td>2.6<\/td><\/tr><tr><td>Netherlands<\/td><td>2.6<\/td><\/tr><tr><td>Belgium<\/td><td>2.4<\/td><\/tr><tr><td>Germany<\/td><td>2.3<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indian_Imports\"><\/span>Indian Imports<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Imports refer to any goods or services legally brought into one country from another, typically for trade purposes. Imported goods or services are provided to domestic consumers by foreign producers.<\/li><li>In the receiving country, an import is considered an export to the sending country. The import process usually involves customs authorities in both the importing and exporting countries and is often subject to import quotas, tariffs, and trade agreements.<\/li><li>In India, import data is reported by the <strong>Directorate General of Commerce.<\/strong> Among the significant imports, the value of Petroleum, Oil, and Lubricants (POL) saw growth in the financial year 2019-20.<\/li><li>For the period FY 2022-23 (April-March), India&#8217;s merchandise imports totaled US $714.24 billion, compared to $613.05 billion during FY 2021-22 (April-March).<\/li><li>A report from the UK&#8217;s Department of International Trade, released in September 2021, projects that India is poised to become the world&#8217;s third-largest importer by 2050.<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_Import_Destinations_2021-22_in_Share\"><\/span>Top Import Destinations (2021-22 in % Share)<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table><tbody><tr><td><strong>Country<\/strong><\/td><td><strong>Percentage Share<\/strong><\/td><\/tr><tr><td>China<\/td><td>15.5%<\/td><\/tr><tr><td>United Arab Emirates<\/td><td>7.3%<\/td><\/tr><tr><td>United States<\/td><td>7.2%<\/td><\/tr><tr><td>Saudi Arabia<\/td><td>5.0%<\/td><\/tr><tr><td>Iraq<\/td><td>4.9%<\/td><\/tr><tr><td>Switzerland<\/td><td>4.7%<\/td><\/tr><tr><td>Hong Kong<\/td><td>3.2%<\/td><\/tr><tr><td>South Korea<\/td><td>2.9%<\/td><\/tr><tr><td>Indonesia<\/td><td>2.9%<\/td><\/tr><tr><td>Singapore<\/td><td>2.9%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-cse-gs-integrated-course?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=GS+Integrated\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/8.png\" alt=\"\" class=\"wp-image-42401 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/8.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/8-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/8-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trade_Composition\"><\/span>Trade Composition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The composition of trade is outlined below:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Export_Composition\"><\/span>Export Composition<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>The commodity composition of India&#8217;s trade has undergone significant changes since liberalization, influenced by trade policy, movements in national prices, and the evolving pattern of domestic demand.<\/li><li>India&#8217;s overall exports (merchandise and services combined) for April-February 2021-22 are estimated at US $601.77 billion, showing a positive growth of 36.19% over the same period last year and a positive growth of 23.44% from April-February 2019-20.<\/li><li>According to the International Monetary Fund&#8217;s World Economic Outlook Database, India&#8217;s Total Gross Domestic Product amounted to<strong> US $8.221<\/strong> trillion as of October 2016. Therefore, exports accounted for approximately 3% of the total Indian economic output.<\/li><li>The top 10 export product categories for the financial year 2021-22, according to the Department of Commerce, Government of India, are as follows:<ul><li>Petroleum products: 14.3%<\/li><li>Pearl, precious, semi-precious stones: 6.8%<\/li><li>Drug formulations, biologicals: 4.7%<\/li><li>Gold and other precious metal jewelry: 2.8%<\/li><li>Iron and steel: 6.0%<\/li><li>Organic chemicals: 2.8%<\/li><li>Electric machines and equipment: 2.4%<\/li><li>Aluminium products: 2.3%<\/li><li>Products of iron-steel: 2.0%<\/li><li>Marine products: 2.0%<\/li><\/ul><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Import_Composition\"><\/span>Import Composition<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Overall imports for April-February 2021-22 are estimated to be <strong>US $683.01<\/strong> billion, reflecting a positive growth of 51.51% over the same period. The value of non-petroleum imports was US $44.07 billion in August 2022, showing a positive growth of 23.63% over non-petroleum imports of US $35.65 billion in August 2021.<\/li><li>India&#8217;s top 10 imports accounted for almost three-quarters (74.3%) of the overall value of its product purchases from other countries. The highest dollar-value product groups in India&#8217;s import purchases during 2021-22 are as follows:<ul><li>Petroleum crude: 19.2%<\/li><li>Gold: 8.8%<\/li><li>Petroleum products: 6.3%<\/li><li>Coal, coke, and briquettes, etc.: 4.9%<\/li><li>Pearl, precious, semi-precious stones: 5.0%<\/li><li>Electronics components 3.8%<\/li><li>Vegetable oil 3.2%<\/li><li>Organic chemicals 2.9%<\/li><li>Computer hardware 2.6%<\/li><li>Plastic raw materials 2.5%<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overall_Trade_Balance\"><\/span>Overall Trade Balance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>India experienced a current account deficit in H1 (first half of the financial year) FY 22 due to a widening trade deficit, driven by a broad-based revival of aggregate demand. Despite the <strong>Current Account Deficit (CAD),<\/strong> robust capital flows resulted in an overall Balance of Payments (BoP) surplus of US$ 63.1 billion in H1:FY 22.<\/li><li>The<strong> trade deficit<\/strong> for FY 2022-23 (April-March) was estimated at $ 266.78 billion compared to $191.05 billion during FY 2021-22, leading to augmented foreign exchange reserves of US$ 596 billion as of June 2023. India consistently ran a trade surplus with its top trading countries, the USA and the United Arab Emirates, since 2014-15.<\/li><li>However, trade deficits persisted with other major trading partners such as China PRP, Saudi Arabia, Iraq, Germany, Korea RP, Indonesia, and Switzerland from 2014-15. India had a trade surplus with <strong>Hong Kong and Singapore <\/strong>until 2017-18, shifting to a trade deficit in 2018-19. Bilateral imbalances have generally remained stable.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Import_Cover\"><\/span>Import Cover<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Import cover, measured in months of retained imports of goods at the year-end, indicates the number of months of money available in the national bank to cover the cost of imports.&nbsp;<\/li><li>During the currency crisis of 2013, with foreign exchange reserves of around US$275 billion, import cover dropped to approximately seven months. Currency experts suggest that eight to ten months of import cover is essential for currency stability.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Export_Promotion\"><\/span>Export Promotion<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>India&#8217;s Foreign Trade Policy emphasizes promoting exportable goods and reducing reliance on imports to meet domestic demand for foreign goods. Export promotion policies aim to encourage exports, enhance forex reserves, and address the BoP deficit. With imports liberalized in line with globalization, the government employs various incentives, subsidies, and concessions to boost exports.<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Measures_for_Export_Promotion\"><\/span>Measures for Export Promotion<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<ul class=\"wp-block-list\"><li>Several committees, including the Gorewala Committee 1950, De Souza Committee 1957, Import and Export Policy Committee 1962, Alexander Committee 1979, Tondon Committee 1980, Abid Hussain Committee 1984, and Rangarajan Committee 1991, have made recommendations to promote exports.&nbsp;<\/li><li>These recommendations have led to the initiation of various steps for export promotion.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Major_Initiatives_for_Export_Boost\"><\/span>Major Initiatives for Export Boost<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>India&#8217;s export performance owes its success to various schemes and initiatives that aim to mitigate the impact of COVID-19. Some noteworthy schemes include:<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Remission_of_Duties_and_Taxes_on_Products_RoDTEP\"><\/span>Remission of Duties and Taxes on Products (RoDTEP):<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Implemented from January 1, 2021, this WTO-compliant scheme improves upon the <strong>Merchandise Exports from India Scheme (MEIS).<\/strong><\/li><li>RoDTEP reimburses central, state, and local taxes and duties incurred during the manufacturing and distribution of exported products, fostering a level playing field for domestic industries abroad.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Developing_Districts_as_Export_Hubs\"><\/span>Developing Districts as Export Hubs:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Aims to make districts active stakeholders in promoting the exports of goods\/services produced locally.<\/li><li><strong>District Export Promotion Committees <\/strong>(DEPCs) have been established in each district, identifying products with export potential across the country.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Production-Linked_Incentive_PLI_Scheme\"><\/span>Production-Linked Incentive (PLI) Scheme:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Provides incentives based on incremental sales for products manufactured domestically, targeting a minimum production of<strong> over $500 billion <\/strong>in five years.<\/li><li>Sectors covered include automobiles, auto components, pharmaceutical drugs, telecom, networking products, and electronic\/technology products.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Electronic_Platform_for_Preferential_Certificate_of_Origin_COO\"><\/span>Electronic Platform for Preferential Certificate of Origin (COO):<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Facilitates electronic issuance of Free Trade Agreement (FTA)\/Preferential Trade Agreement (PTA) certificates, avoiding physical movement due to the COVID-19 crisis.<\/li><li>Non-preferential COO issuance started on April 5, 2021.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Infusion_of_Capital_in_EXIM_Bank\"><\/span>Infusion of Capital in EXIM Bank:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The government infused \u20b9750 crore in the Export-Import Bank of India (EXIM Bank) during the fiscal year 2021-22 through subscription to its share capital.<\/li><li>Government-approved capital infusion of \u20b94,400 crore to Export Credit Guarantee Corporation of India Ltd. (ECGC) over five years.<\/li><li><strong>Export Promotion Capital Goods (EPCG):<\/strong> An ongoing scheme under the foreign trade policy.<\/li><li>The government reduced specific export obligations from 90% to 75% of the normal export obligation to encourage procurement of capital goods from indigenous manufacturers.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Export_Promotion_Schemes\"><\/span>Other Export Promotion Schemes:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Trade Infrastructure for Export Scheme (TIES), Market Access Initiatives (MAI), Special Economic Zone (SEZ) Scheme, Emergency Credit Line Guarantee Scheme (ECLGS), and Advance Authorisation Scheme continue to support trade infrastructure and marketing efforts.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pradhan_Mantri_Gati_Shakti_National_Master_Plan_NMP\"><\/span>Pradhan Mantri Gati Shakti National Master Plan (NMP)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>The Pradhan Mantri <strong>Gati Shakti National Master Plan<\/strong> (NMP), approved in October 2021, is designed to establish multimodal connectivity to various economic zones. The primary objective is to integrate infrastructure linkages comprehensively, facilitating the seamless movement of people, goods, and services to enhance logistics efficiency.<\/li><li>Under the Gati Shakti initiative, 16 ministries collaborate for integrated planning and coordinated implementation of infrastructure connectivity projects, including<strong> Bharatmala, Sagarmala, inland waterways, and UDAAN, among others<\/strong>. The plan incorporates advanced technology, utilizing spatial planning tools with ISRO imagery developed by BISAG-N (Bhaskaracharya National Institute for Space Applications and Geo-informatics).<\/li><li>Economic zones, such as textile clusters, pharmaceutical clusters, and electronic parks, are targeted to enhance global competitiveness for Indian businesses by reducing logistics costs and establishing robust linkages for local industries and consumers. This initiative aims to stimulate economic growth, attract foreign investment, and create numerous employment opportunities.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Initiatives_to_Improve_Logistics_Ecosystem\"><\/span>Other Initiatives to Improve Logistics Ecosystem<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The government has implemented various measures in recent years to enhance logistics efficiency through infrastructure development and process reforms. Notable initiatives include the introduction of FASTag, Turant Customs, mandatory RFID (Radio Frequency Identification) tagging for all EXIM bound containers, E-San chit, Indian Customs Enquiry for Trade Assistance and Knowledge (ICETRAK), ICEDASH (Indian Customs EDI Dashboard), Secured Logistics Document Exchange (SLDE), Import Clearance System, GHG Calculator, and more.<\/li><li>To ease<strong> maritime trade<\/strong>, efforts are underway for the development of port-specific master plans and coordination mechanisms. This includes the upgradation of Land Customs Stations (LCS) to<strong> Integrated Check Posts<\/strong> (ICPs) and the promotion of Free Trade Warehousing Zones.<\/li><li>The I<strong>nterest Equalisation Scheme<\/strong> has been devised to provide benefits in the interest rates charged by banks to exporters on their pre and post-shipment rupee export credits. Subvention rates have been revised, with reduced rates of 3% subvention for MSME manufacturing exporters and 2% for merchant and other manufacturers exporters.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Export_Processing_Zone_EPZ\"><\/span>Export Processing Zone (EPZ)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>A <strong>Free Trade Zone<\/strong> (FTZ) or <strong>Export Processing Zone<\/strong> (EPZ) allows goods to be landed, handled, manufactured, or re-exported without customs intervention. When goods move to consumers within the zone&#8217;s country, they become subject to prevailing customs duties. These zones are typically situated around major seaports, international airports, and national frontiers, offering geographical advantages for trade.<\/li><li>Free Trade Zones are characterized as labor-intensive manufacturing centers involving the import of raw materials or components and the export of factory products. Asia&#8217;s first Export Promotion Zone was established in Kandla in 1965, with a total of seven EPZs set up in the public sector, including locations like Kandla (Gujarat), Santacruz (Maharashtra), Falta (West Bengal), Noida (Uttar Pradesh), Kochi (Kerala), Chennai (Tamil Nadu), and Visakhapatnam (Andhra Pradesh). Additionally, EPZs were established in the private sector, focusing on specific industries such as electronics and gems jewelry.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Special_Economic_Zone_SEZ\"><\/span>Special Economic Zone (SEZ)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The inception of Asia&#8217;s first<strong> Export Processing Zone<\/strong> (EPZ) in Kandla, India, in 1965 marked the beginning of a transformative journey.<\/li><li>The SEZ Policy, announced in April 2000, aimed to position SEZs as engines of growth, supported by robust infrastructure and an enticing fiscal package.<\/li><li>To ensure stability and coherence in the SEZ regime, the SEZ Act of 2005 came into effect on February 10, 2006. The act, aligning with the provisions of the SEZ Act, of 2005, permits 100% Foreign Direct Investment (FDI) in SEZs through the automatic route.<\/li><li>The act offers an attractive fiscal incentive package, including exemption from customs duties, central excise duties, service tax, central sales taxes, and securities transaction tax for both developers and units.<\/li><li>Incentives under the act include tax holidays for 15 years, comprising 100% tax exemption for the initial five years, 50% for the subsequent five years, and 50% for the ploughed-back export profits in the final five years. SEZ developers enjoy 100% income tax exemption for ten years within a block period of 15 years.<\/li><li><strong>Infrastructure<\/strong> provisions aim to establish free trade and warehousing zones to create world-class trade-related infrastructure, making India a global trading hub. This includes the setup of offshore banking units and units in International Financial Service Centres within SEZs. Public-private participation in infrastructure development is encouraged, with the establishment of a SEZ authority in each Central Government SEZ for developing new infrastructure and fortifying existing ones.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Agri_Export_Zones_AEZs\"><\/span>Agri Export Zones (AEZs)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>In March 2001, the Government of India unveiled the Agri Export Zones (AEZs) policy to enhance agricultural exports from the country. Sanctioning 60 AEZs, covering approximately 40 agricultural commodities across 20 states, the policy aims to consolidate efforts by various Central and State Government departments to boost agricultural commodity exports.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Foreign_Trade_Policy_FTP\"><\/span>Foreign Trade Policy (FTP)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The Union Commerce Ministry of the Government of India announces an integrated Foreign Trade Policy, also known as EXIM Policy, every five years.&nbsp;<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Foreign_Trade_Policy_Formulation_in_India\"><\/span>Foreign Trade Policy Formulation in India<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Formulated and implemented primarily by the <strong>Ministry of Commerce <\/strong>and Industry, in collaboration with other relevant ministries and agencies, such as the Ministry of Finance, <strong>Ministry of Agriculture<\/strong>, and the <strong>Reserve Bank of India<\/strong>, the FTP serves as an instrumental tool to achieve India&#8217;s overall economic policy objectives of growth, industrial development, and self-sufficiency.<\/li><li>While FTP is a means to attain long-term goals, it is also strategically utilized to address short-term objectives like containing inflation. The Department of Commerce at the Ministry of Commerce and Industry is entrusted with the mandate to formulate India&#8217;s International Trade and Commercial Policy and execute it effectively.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Foreign_Trade_Policy_2023-28\"><\/span>Foreign Trade Policy 2023-28<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Effective from April 1, 2023, the Foreign Trade Policy (FTP) 2023-28 is a comprehensive document that seamlessly blends continuity with innovation to enhance export facilitation.&nbsp;<\/li><li>The government envisions propelling India&#8217;s total exports to USD 2 trillion by 2030, ensuring equal contributions from both merchandise and services sectors.<\/li><li>Encouraging the use of the Indian currency in cross-border trade is also a key focus, backed by a new payment settlement framework introduced by the RBI in July 2022.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Approach_of_FTP_2023-28_Four_Pillars\"><\/span>Key Approach of FTP 2023-28: Four Pillars<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>The policy&#8217;s foundation rests on four key pillars:<\/li><li>Incentive to Remission: Focused on export promotion through collaboration with exporters, states, districts, Indian missions, ease of doing business, reduction in transaction costs, e-initiatives, and emerging areas like E-Commerce.<\/li><li>Developing Districts as Export Hubs: Aims at streamlining the Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) policy, fostering growth at the grassroots level.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Salient_Features_of_FTP_2023-28\"><\/span>Salient Features of FTP 2023-28<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Important features of FTP 2023-28 are as follows<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_Re-Engineering_and_Automation\"><\/span>Process of Re-Engineering and Automation:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Shifts focus from an incentive-based regime to one that is technology-driven and collaborative.<\/li><li>Reduction in fee structures and IT-based schemes to enhance accessibility for MSMEs and other entities.<\/li><li>Duty exemption schemes to be implemented through Regional Offices, ensuring a rule-based IT system for efficiency.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Towns_of_Export_Excellence_TEE\"><\/span>Towns of Export Excellence (TEE):<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Faridabad, Mirzapur, Firozabad, and Varanasi were designated as new TEEs, joining the existing 39 towns.<\/li><li>TEEs are granted priority <strong>access to export promotion<\/strong> funds under the MAI scheme and benefits under the Export Promotion Capital Goods (EPCG) scheme.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recognition_of_Exporters\"><\/span>Recognition of Exporters:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Exporter firms recognized with status based on export performance to be partners in capacity-building initiatives.<\/li><li>Encouragement for 2-star and above status holders to provide trade-related training based on a model curriculum.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Promoting_Export_from_the_Districts\"><\/span>Promoting Export from the Districts:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Partnerships with State Governments to drive the<strong> Districts as Export<\/strong> Hubs (DEH) initiative.<\/li><li>Institutional mechanisms like the State Export Promotion Committee and District Export Promotion Committee address concerns at the district level.<\/li><li>Preparation of district-specific export action plans outlining strategies to promote identified products and services.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strengthening_SCOMET_Policy\"><\/span>Strengthening SCOMET Policy<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>As India aligns itself more closely with countries in the <strong>export control<\/strong> regime, there&#8217;s a concerted effort to streamline and fortify the SCOMET policy.&nbsp;<\/li><li>The outreach and understanding of SCOMET among stakeholders have expanded, and the regulatory framework is being enhanced to effectively implement international treaties and agreements entered into by India.<\/li><li>A robust export control system in India aims to provide Indian exporters access to dual-use high-end goods and technologies while facilitating the export of controlled items and technologies under SCOMET.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Boosting_E-Commerce_Exports\"><\/span>Boosting E-Commerce Exports<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Estimates project the e-commerce export potential to reach USD 200 to USD 300 billion by 2030.<\/li><li>The FTP 2023 outlines a strategic roadmap for establishing e-commerce hubs, addressing elements like payment reconciliation, bookkeeping, returns policy, and export entitlements.&nbsp;<\/li><li>In a significant move, the consignment-wise cap on e-commerce exports through couriers has been increased from 5 lahks to 10 lahks in the FTP 2023, with further revisions or removal based on exporter feedback.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Enhancements_Under_EPCG_Scheme\"><\/span>Enhancements Under (EPCG) Scheme<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>The EPCG Scheme, facilitating the duty-free import of capital goods for export production, undergoes further rationalization.&nbsp;<\/li><li>Key changes include the inclusion of the<strong> Prime Minister Mega Integrated Textile Region and Apparel Parks<\/strong> (PM MITRA) scheme under the Common Service Provider (CSP) Scheme of EPCG. Additionally, the dairy sector is exempted from maintaining Average Export Obligation to support technological upgrades.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/refer-and-earn\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1.png\" alt=\"\" class=\"wp-image-46428 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><figcaption><a href=\"https:\/\/edukemy.com\/refer-and-earn\" target=\"_blank\" rel=\"noopener\" title=\"\">Refer &amp; Earn NOW<\/a><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advancements_in_the_Advance_Authorisation_Scheme\"><\/span>Advancements in the Advance Authorisation Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The Advance Authorisation Scheme, catering to Domestic Tariff Area (DTA) units, enables duty-free import of raw materials for manufacturing export items.&nbsp;<\/li><li>This scheme is now aligned with the EOU and SEZ schemes.<\/li><li>A Special Advance Authorisation Scheme is extended to the apparel and clothing sector on a self-declaration basis to facilitate the swift execution of export orders.&nbsp;<\/li><li>The <strong>Self-Ratification Scheme<\/strong> for fixing Input-Output Norms is now extended to 2-star and above status holders.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amnesty_Scheme_for_Exporters\"><\/span>Amnesty Scheme for Exporters<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>An online portal will be launched under the amnesty scheme, providing a six-month window for exporters to register and avail themselves of the scheme.&nbsp;<\/li><li>This initiative aims to regularize pending cases of default in export obligations by paying customs duties proportionate to unfulfilled export obligations.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Service_Exports_from_India_Scheme_SEIS\"><\/span>Service Exports from India Scheme (SEIS)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Replacing SFIS, the SEIS benefits all service providers in India earning foreign exchange, irrespective of their constitution or profile.&nbsp;<\/li><li>Those exporting notified services are eligible for benefits at the rate of 3% or 5% of net foreign exchange earnings.<\/li><li>Duty Credit Scrip issued under SEIS is freely transferable and usable for all types of goods\/services, and incentives are now extended to units in SEZs.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preferential_Trade_Agreement_PTA\"><\/span>Preferential Trade Agreement (PTA)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>A Preferential Trade Agreement (PTA) is a trade arrangement that grants special access to certain products among participating countries.&nbsp;<\/li><li>This is achieved by reducing tariffs without completely abolishing them, representing the initial step toward <strong>economic integration<\/strong>.&nbsp;<\/li><li>PTAs may encompass provisions on customs cooperation, trade facilitation, harmonization of standards, and regulatory cooperation across various domains.<\/li><li>In a PTA, there exists a positive list of products subject to reduced duties, exemplified by the India-MERCOSUR PTA.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Free_Trade_Agreement_FTA\"><\/span>Free Trade Agreement (FTA)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>A Free Trade Agreement (FTA) is a pact between two or more nations aimed at diminishing barriers to imports and exports. Under an FTA, goods and services can flow across international borders with minimal government tariffs, quotas, subsidies, or prohibitions hindering their exchange.<\/li><li>FTAs cover trade in goods, spanning agricultural or industrial products, and trade in services such as banking, construction, and trading. Unlike PTAs, FTAs utilize a negative list where duties are not reduced or eliminated, as seen in the<strong> India-Sri Lanka Free Trade<\/strong> Agreement.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trading_Blocks\"><\/span>Trading Blocks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Comprehensive Economic Cooperation Agreement<\/strong> (CECA) and Comprehensive Economic Partnership Agreement (CEPA) are agreements comprising an integrated package covering goods, services, investment, and other areas like intellectual property rights and competition.<\/li><li>While CECA involves phased tariff reduction on listed items, CEPA extends to trade in services, investment, and broader economic partnership. CEPA holds a wider scope compared to CECA.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Regional_Comprehensive_Economic_Partnership_RCEP\"><\/span>Regional Comprehensive Economic Partnership (RCEP)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The RCEP, conceived in 2011, is a free trade agreement encompassing Asia-Pacific nations.<\/li><li>It includes Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam.<\/li><li>RCEP covers goods, services, investments, intellectual property rights, economic and technical cooperation, and dispute settlement. India opted not to sign the RCEP agreement in November 2019, citing domestic challenges.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bay_of_Bengal_Initiative_for_Multi-Sectoral_Technical_and_Economic_Cooperation_BIMSTEC\"><\/span>Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Established in 1997, BIMSTEC is a regional organization connecting South and Southeast Asia, bridging the ecologies of the Great Himalayas and the Bay of Bengal.<\/li><li>It aims to foster an environment for rapid economic development, accelerate social progress, and encourage collaboration on shared interests.<\/li><li>BIMSTEC emphasizes equality, partnership, and active collaboration, striving for mutual assistance among member countries in various areas of common interest.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"South_Asian_Free_Trade_Agreement_SAFTA\"><\/span>South Asian Free Trade Agreement (SAFTA)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The South Asian Free Trade Area (SAFTA) is the Free Trade Arrangement established by the South Asian Association for Regional Cooperation (SAARC).<\/li><li>Enacted in 2006, it succeeded the AFTA SAARC Preferential Trading Arrangement. Signatory countries to SAFTA include Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.<\/li><li>SAFTA aims to foster and enhance mutual agreements among member countries, promoting medium and long-term contracts, trade operations by states, and ensuring supply and import assurance for specific products.&nbsp;<\/li><li>The agreement encompasses concessions on tariffs, both national duties and non-tariff items, contributing to the Balance of Trade.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Balance_of_Trade\"><\/span>Balance of Trade<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The Balance of Trade (BoT), also known as the trade balance, represents the disparity between the monetary value of a country&#8217;s imports and exports of goods during a specific timeframe. As part of the larger economic picture, the Balance of Payments, it considers capital movements, loan repayments, tourist expenditures, freight and insurance charges, and other payments.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_equilibrium_three_scenarios_may_unfold\"><\/span>In equilibrium, three scenarios may unfold:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Balanced BoT: Exports equal Imports.<\/li><li>Unbalanced BoT: Exports are less than Imports.<\/li><li>Favorable BoT: Exports exceed Imports.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table><tbody><tr><td><strong>Basis<\/strong><\/td><td><strong>Balance of Trade<\/strong><\/td><td><strong>Balance of Payments<\/strong><\/td><\/tr><tr><td>Description<\/td><td>A statement that captures the country&#8217;s export and import of goods with the remaining world.<\/td><td>A statement that covers all economic transactions done by the country with the remaining world.<\/td><\/tr><tr><td>Area<\/td><td>Its area is narrow and also it is a part of Bop.<\/td><td>Its area is comprehensive.<\/td><\/tr><tr><td>Nature<\/td><td>It can be unfavorable and favorable.<\/td><td>It is always in balance.<\/td><\/tr><tr><td>Items<\/td><td>The entire BoT is related to visible items.<\/td><td>The entire BoT is related to visible and invisible (services) items.<\/td><\/tr><tr><td>Rate<\/td><td>The effect of Exchange cannot be affected.<\/td><td>Can be affected.<\/td><\/tr><tr><td>Importance<\/td><td>It provides a partial picture.<\/td><td>It provides a whole picture.<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prelims_Facts\"><\/span>Prelims Facts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Which country holds the title of being the largest trade partner of India? <strong><em>USA (UKPSC (Pre) 2016)<\/em><\/strong><\/li><li>The Exim Bank of India (EXIM Bank) was established by the Government of India in the year 1982<strong><em> (UKPSC (Pre) 2010)<\/em><\/strong><\/li><li>In which location was the private sector&#8217;s first Export Processing Zone established? Surat<strong><em> (UPPSC (Mains) 2005)<\/em><\/strong><\/li><li>In terms of the economy, the visit by foreign nations to witness the XIX Commonwealth Games in India amounted to Exports<strong> (IAS (Pre) 2011)<\/strong><\/li><li>Which Ministry of the Government of India is related to India&#8217;s Foreign Trade policy? Commerce and Industry <strong><em>(MPPSC (Pre) 2020)<\/em><\/strong><\/li><li>The problem of international liquidity is related to the non-availability of Dollars and other hard currencies <strong><em>[IAS (Pre) 2015]<\/em><\/strong><\/li><li>Which is the most important item exported from India? Clothes <strong><em>(UPPSC (Pre) 2018]<\/em><\/strong><\/li><li>Among Wheat, Rice, Sugar, and Pulses, which item cannot be exported? Pulses<strong><em> (UPPSC (Pre) 2013]<\/em><\/strong><\/li><li>What is the main aim of the ASIDE scheme started by the Indian Government? To encourage export <strong><em>[IAS (Pre) 2010]<\/em><\/strong><\/li><li>Between which years was the trade balance favorable to India? 1972-73 and 1976-77<strong><em> [BPSC (Pre) 2015]<\/em><\/strong><\/li><li>All import and export transactions of a country during a given period, normally a year, are systematically recorded in Balance of Payment <strong><em>[IAS (Pre) 2018]<\/em><\/strong><\/li><li>India and Malaysia Free Trade Agreement was signed in which year? 2011 <strong><em>(UPPSC (Pre) 2011]<\/em><\/strong><\/li><li>Tirupur industrial area in the state of Tamil Nadu is famous for which export item? Cotton textiles <strong><em>(IAS (Pre) 2020)<\/em><\/strong><\/li><li>The agreement between India and the USA is designed to enhance transparency between nations on tax matters. The agreement takes effect from 30th September 2015 <strong><em>(UPPSC (Pre) 2016)<\/em><\/strong><\/li><li>The Super 301 law is related to Free trade barriers <strong><em>[UPPSC (Pre) 1991]<\/em><\/strong><\/li><li>The India Brand Equity Fund (IBEF) was established in 1996 <strong><em>[UPPSC (Pre) 1997]<\/em><\/strong><\/li><li>Duty-Drawback is related to Refund in payments <strong><em>(UPPSC (Pre) 2011]<\/em><\/strong><\/li><li>Freely permitting the conversion of the rupee to other currencies and vice-versa is known as the Convertibility of the rupee <strong><em>[IAS (Pre) 2015]<\/em><\/strong><\/li><li>The Special Economic Zone Act was passed by the Parliament in the year 2006 <strong><em>[UPPSC (Pre) 2010]<\/em><\/strong><\/li><li>The term West Texas Intermediate found in the news refers to a grade of Crude oil <strong><em>(IAS (Pre) 2020)<\/em><\/strong><\/li><li>The development of the concept of the Global village is based on Transport and Communication development <strong><em>[UPPSC (Pre) 2012]<\/em><\/strong><\/li><li>What is the full form of EPCG? Export Promotion Capital Goods <strong><em>[BPSC (Pre) 2015]<\/em><\/strong><\/li><li>The Export Credit Guarantee Corporation of India (ECGC) is related to Providing credit risk insurance <strong><em>[UPPSC (Pre) 2012]<\/em><\/strong><\/li><li>The term Digital Single Market Strategy seen in the news refers to the <strong><em>EU [IAS (Pre) 2017]<\/em><\/strong><\/li><li>The Government of India in the Union Budget 2020-2019 announced a new scheme named NIRVIK. Which area of the economy does NIRVIK affect? Export<strong><em> [BPSC (Pre) 2020]<\/em><\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"UPSC_NCERT_Practice_Questions\"><\/span>UPSC NCERT Practice Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Name_of_the_countries_in_which_India_has_a_negative_bilateral_trade_balance\"><\/span>1. Name of the countries in which India has a negative bilateral trade balance.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1. China<\/p>\n\n\n\n<p>2. Switzerland<\/p>\n\n\n\n<p>3. Qatar<\/p>\n\n\n\n<p>Codes<\/p>\n\n\n\n<p>(a) Only 2<\/p>\n\n\n\n<p>(b) 1 and 2<\/p>\n\n\n\n<p>(c) Only 3<\/p>\n\n\n\n<p>(d) 1, 2 and 3<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Consider_the_following_statements_about_Indias_New_Foreign_Trade_Policy_FTP_UPPSC_Pr_2018\"><\/span>2. Consider the following statements about India&#8217;s New Foreign Trade Policy (FTP), UPPSC (Pr) 2018<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1. It is announced by the Ministry of External Affairs.<\/p>\n\n\n\n<p>2. It was earlier known as Export-Import Policy<\/p>\n\n\n\n<p>3. As part of FTP, India has signed a Comprehensive Economic Partnership Agreement (CEPA) with South Korea.<\/p>\n\n\n\n<p>Which of the statement(s) given above is\/are correct?<\/p>\n\n\n\n<p>(a) 1 and 2<\/p>\n\n\n\n<p>(b) 2 and 3<\/p>\n\n\n\n<p>(c) 1 and 3<\/p>\n\n\n\n<p>(d) All of these<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Measures_to_reduce_imports_will\"><\/span>3. Measures to reduce imports will<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) boost injections into an economy.<\/p>\n\n\n\n<p>(b) reduce withdrawals from an economy,<\/p>\n\n\n\n<p>(c) decrease injections into an economy<\/p>\n\n\n\n<p>(d) increase withdrawals from an economy<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Which_one_of_the_following_items_has_gained_the_highest_growth_rate_in_the_import_composition_of_the_Indian_economy_in_the_last_decade\"><\/span>4. Which one of the following items has gained the highest growth rate in the import composition of the Indian economy in the last decade?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) Project good&nbsp;<\/p>\n\n\n\n<p>(b) Iron and steel<\/p>\n\n\n\n<p>(c) Petroleum products<\/p>\n\n\n\n<p>(d) Cotton accessories<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Five_different_earlier_schemes_have_been_merged_into_a_single_scheme_namely\"><\/span>5 Five different earlier schemes have been merged into a single scheme, namely<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) Service Exports from India Scheme.<\/p>\n\n\n\n<p>(b) Merchandise Exports from India Scheme.<\/p>\n\n\n\n<p>(c)Pradhan Mantri Swasthya Suraksha Yojana.<\/p>\n\n\n\n<p>(d)National Urban Health Mission.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_International_Trade_is_most_likely_to_generate_short-term_unemployment_in\"><\/span>6. International Trade is most likely to generate short-term unemployment in<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) industries in which there are neither imports nor exports.<\/p>\n\n\n\n<p>(b) import-competing industries.<\/p>\n\n\n\n<p>(c) Industries that sell to domestic and foreign buyers.<\/p>\n\n\n\n<p>(d) Industries that sell to only foreign buyers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Free_traders_maintain_that_an_open_economy_is_advantageous_in_that_it_provides_all_the_following_except\"><\/span>7. Free traders maintain that an open economy is advantageous in that it provides all the following except<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) increased competition for world producers.&nbsp;<\/p>\n\n\n\n<p>(b) a wider selection of products for consumers<\/p>\n\n\n\n<p>(c) relatively high wage levels for all domestic workers<\/p>\n\n\n\n<p>(d) the utilization of the most efficient production methods.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Terms_of_trade_between_two_countries_refer_to_a_ratio_of_%E2%80%A6%E2%80%A6\"><\/span>8. Terms of trade between two countries refer to a ratio of \u2026\u2026..<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) export prices to import prices.<\/p>\n\n\n\n<p>(b) currency values.<\/p>\n\n\n\n<p>(c) export to import.<\/p>\n\n\n\n<p>(d) Balance of Trade to Balance of Payments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Consider_the_following\"><\/span>9. Consider the following.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1. Edible oil<\/p>\n\n\n\n<p>2. Semi-precious stone<\/p>\n\n\n\n<p>3. Medicinal and pharma-products<\/p>\n\n\n\n<p>4. Fertilisers<\/p>\n\n\n\n<p>5. Petroleum crude and product<\/p>\n\n\n\n<p>Which of the items given above are the components of the bulk import in the Indian economy?<\/p>\n\n\n\n<p>(a) 1, 3, 4, 5&nbsp;<\/p>\n\n\n\n<p>(b) 1, 2, 4, 5<\/p>\n\n\n\n<p>(c) 2, 3, 4, 5<\/p>\n\n\n\n<p>(d) All of the above<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Which_one_of_the_following_percentages_is_the_share_of_the_Indian_export_in_the_International_Trade\"><\/span>10 . Which one of the following percentages is the share of the Indian export in the International Trade?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) Less than 1%<\/p>\n\n\n\n<p>(b) More than 1 but less than 4%<\/p>\n\n\n\n<p>(c) More than 4 but less than 5%&nbsp;<\/p>\n\n\n\n<p>(d) More than 5 but less than 7%<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"11_Special_Economic_Zone_SEZ_Act_became_effective_in_UPPSC_Prej_2010\"><\/span>11. Special Economic Zone (SEZ) Act became effective in UPPSC Prej 2010<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) 2004<\/p>\n\n\n\n<p>(b) 2005<\/p>\n\n\n\n<p>(c) 2006<\/p>\n\n\n\n<p>(d) 2007<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"12_In_India_the_Special_Economic_Zone_SEZ_policy_was_announced_in_UPPSC_Main_2014_17\"><\/span>12. In India, the Special Economic Zone (SEZ) policy was announced in&nbsp; UPPSC (Main) 2014, 17<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) April, 2000<\/p>\n\n\n\n<p>(b) April, 2001<\/p>\n\n\n\n<p>(c) April, 2002<\/p>\n\n\n\n<p>(d) April, 2003<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"13_A_Free_Trade_Zone_FTZ_is_one_where\"><\/span>13. A Free Trade Zone (FTZ) is one where<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) trade is done without restriction.<\/p>\n\n\n\n<p>(b) any entrepreneur is free to start industries.<\/p>\n\n\n\n<p>(c) infrastructural facilities are provided free to entrepreneurs by the Government.<\/p>\n\n\n\n<p>(d) industries are free from excise duties and produce.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"14_Free_Trade_Policy_FTP_refers_to_a_policy_where_there_is_UPPCS_Mains_2005\"><\/span>14. Free Trade Policy (FTP) refers to a policy where there is UPPCS (Mains) 2005<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) absence of tariff.<\/p>\n\n\n\n<p>(b) restriction on the movement of goods.<\/p>\n\n\n\n<p>(c) existence of an anti-dumping policy.&nbsp;<\/p>\n\n\n\n<p>(d) encouragement for balanced growth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"15_The_problem_of_international_cash_is_related_to_the_non-availability_of_which_of_the_following\"><\/span>15. The problem of international cash is related to the non-availability of which of the following?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>(a) Goods arid services<\/p>\n\n\n\n<p>(b) Gold and silver&nbsp;<\/p>\n\n\n\n<p>(c) Dollar and other hard currencies<\/p>\n\n\n\n<p>(d) Exportable (surplus)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"16_Consider_the_following_statements_about_the_recent_Foreign_Trade_Policy_FTP\"><\/span>16. Consider the following statements about the recent Foreign Trade Policy (FTP).<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1. The Policy relates to the period 2005 to 2010<\/p>\n\n\n\n<p>2. Its major objective is to double India&#8217;s share of global merchandise trade by the end of the policy.<\/p>\n\n\n\n<p>3. It emphasize on economic development and not on employment generation.<\/p>\n\n\n\n<p>Which of the statement(s) given above is\/are correct?<\/p>\n\n\n\n<p>(a) 1 and 3<\/p>\n\n\n\n<p>(b) Only 2<\/p>\n\n\n\n<p>(c) 1 and 2<\/p>\n\n\n\n<p>(d) All of the above<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Know_Right_Answer\"><\/span>Know Right Answer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. (d)<\/p>\n\n\n\n<p>2. (b)<\/p>\n\n\n\n<p>3. (b)<\/p>\n\n\n\n<p>4. (c)<\/p>\n\n\n\n<p>5. (b)<\/p>\n\n\n\n<p>6. (b)<\/p>\n\n\n\n<p>7. (c)<\/p>\n\n\n\n<p>8. (a)<\/p>\n\n\n\n<p>9. (b)<\/p>\n\n\n\n<p>10. (b)<\/p>\n\n\n\n<p>11. (c)<\/p>\n\n\n\n<p>12. (a)<\/p>\n\n\n\n<p>13. (d)<\/p>\n\n\n\n<p>14. (a)<\/p>\n\n\n\n<p>15. (c)<\/p>\n\n\n\n<p>16. (b)<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQ_What_is_the_purpose_of_international_trade_agreements\"><\/span><strong>FAQ: What is the purpose of international trade agreements?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Answer:<\/strong> International trade agreements are established to facilitate the exchange of goods and services between countries while minimizing trade barriers. The primary purposes include promoting economic growth, fostering cooperation among nations, and creating a predictable and stable trading environment. These agreements aim to reduce tariffs, quotas, and other barriers to trade, thereby encouraging the flow of goods and services across borders. By providing a framework for fair and transparent trade practices, these agreements contribute to global economic stability and increased prosperity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQ_How_do_trade_agreements_benefit_participating_countries\"><\/span><strong>FAQ: How do trade agreements benefit participating countries?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Answer:<\/strong> Trade agreements offer several benefits to participating countries. First, they promote economic efficiency by allowing nations to specialize in the production of goods and services in which they have a comparative advantage. This specialization leads to increased productivity and overall economic growth. Second, trade agreements create a larger market for goods and services, fostering increased competition and innovation. Additionally, these agreements often result in lower prices for consumers due to enhanced efficiency and a broader range of available products. Lastly, trade agreements can strengthen diplomatic ties between nations, fostering a sense of cooperation and mutual benefit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQ_Can_international_trade_agreements_lead_to_job_displacement\"><\/span><strong>FAQ: Can international trade agreements lead to job displacement?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Answer:<\/strong> While international trade agreements can contribute to economic growth, they may also lead to job displacement in certain industries. When countries specialize in producing goods and services in which they have a comparative advantage, less competitive industries may experience a decline. This can result in job losses and economic challenges for workers in those sectors. However, proponents argue that the overall benefits, such as lower prices, increased consumer choices, and job creation in expanding industries, often outweigh the short-term challenges. Many countries implement policies and programs to assist displaced workers through retraining and support to help them transition to new employment opportunities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel &#8211;&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. 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