{"id":30433,"date":"2024-02-28T07:27:13","date_gmt":"2024-02-28T07:27:13","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=30433"},"modified":"2024-02-28T07:27:16","modified_gmt":"2024-02-28T07:27:16","slug":"trade-trends-and-policies-of-india-upsc-indian-geography-notes","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/","title":{"rendered":"Trade Trends and Policies of India &#8211; UPSC Indian Geography Notes"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-geography?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Geography\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/14.png\" alt=\"\" class=\"wp-image-42410\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/14.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/14-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/14-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure>\n\n\n\n<p>In recent years, India has emerged as a dynamic player in the global economy, showcasing remarkable growth and significant contributions to international trade. As one of the world&#8217;s largest and fastest-growing economies, India&#8217;s trade trends and policies hold immense importance not only for its own prosperity but also for the stability and evolution of the global marketplace. With a rich tapestry of diverse industries, a burgeoning consumer base, and a strategic geographical location, India&#8217;s trade dynamics are influenced by a myriad of factors ranging from domestic policies to international agreements. This introductory exploration aims to delve into the key trends and policies shaping India&#8217;s trade landscape, offering insights into its evolving role in the global economy and the strategies driving its trade agenda forward.<\/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-69d50f2bd6bd2\" 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-69d50f2bd6bd2\"  \/><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\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#Foreign_Trade_Policy_of_India_A_Comprehensive_Overview\" title=\"Foreign Trade Policy of India: A Comprehensive Overview\">Foreign Trade Policy of India: A Comprehensive Overview<\/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\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#Key_Components_and_Objectives\" title=\"Key Components and Objectives:\">Key Components and Objectives:<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#Strategic_Focus_Areas\" title=\"Strategic Focus Areas:\">Strategic Focus Areas:<\/a><\/li><\/ul><\/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\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#Major_Initiatives_Under_the_Foreign_Trade_Policy_of_India\" title=\"Major Initiatives Under the Foreign Trade Policy of India\">Major Initiatives Under the Foreign Trade Policy of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#FOREIGN_TRADE_POLICY_2021-2026\" title=\"FOREIGN TRADE POLICY 2021-2026\">FOREIGN TRADE POLICY 2021-2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#Expectations_from_FTP_2021-2026_A_Road_to_5_Trillion_Economy\" title=\"Expectations from FTP 2021-2026: A Road to $5 Trillion Economy\">Expectations from FTP 2021-2026: A Road to $5 Trillion Economy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#FAQs_Regarding_Foreign_Trade_Policy_of_India_A_Comprehensive_Overview\" title=\"FAQs Regarding Foreign Trade Policy of India: A Comprehensive Overview\">FAQs Regarding Foreign Trade Policy of India: A Comprehensive Overview<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#1_What_is_the_Foreign_Trade_Policy_FTP_of_India\" title=\"1. What is the Foreign Trade Policy (FTP) of India?\">1. What is the Foreign Trade Policy (FTP) of India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#2_Who_administers_the_FTP_and_under_which_ministry_does_it_operate\" title=\"2. Who administers the FTP, and under which ministry does it operate?\">2. Who administers the FTP, and under which ministry does it operate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#3_How_often_is_the_FTP_reviewed_and_why\" title=\"3. How often is the FTP reviewed, and why?\">3. How often is the FTP reviewed, and why?<\/a><\/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\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#4_What_are_the_key_responsibilities_of_the_Department_of_Commerce_in_the_context_of_the_FTP\" title=\"4. What are the key responsibilities of the Department of Commerce in the context of the FTP?\">4. What are the key responsibilities of the Department of Commerce in the context of the FTP?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#5_What_is_the_primary_objective_of_the_FTP_in_terms_of_trade_facilitation\" title=\"5. What is the primary objective of the FTP in terms of trade facilitation?\">5. What is the primary objective of the FTP in terms of trade facilitation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#6_What_are_the_twin_strategies_adopted_by_the_government_for_export_promotion\" title=\"6. What are the twin strategies adopted by the government for export promotion?\">6. What are the twin strategies adopted by the government for export promotion?<\/a><\/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\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#7_How_long_is_the_duration_of_the_Foreign_Trade_Policy_and_when_does_it_undergo_updates\" title=\"7. How long is the duration of the Foreign Trade Policy, and when does it undergo updates?\">7. How long is the duration of the Foreign Trade Policy, and when does it undergo updates?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#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-16\" href=\"https:\/\/edukemy.com\/blog\/trade-trends-and-policies-of-india-upsc-indian-geography-notes\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211;&nbsp;here\">Visit our YouTube Channel &#8211;&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Foreign_Trade_Policy_of_India_A_Comprehensive_Overview\"><\/span><strong>Foreign Trade Policy of India: A Comprehensive Overview<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Foreign Trade Policy <strong>(FTP)<\/strong> of India serves as a strategic roadmap, guiding the government&#8217;s efforts to promote domestic production and boost exports to drive economic growth. Administered by the Directorate General of Foreign Trade<strong> (DGFT),<\/strong> under the Ministry of Commerce and Industry, the policy is periodically reviewed to align with the evolving domestic and international landscape.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Components_and_Objectives\"><\/span><strong>Key Components and Objectives:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Guidelines for Import and Export:<\/strong><ul><li>The FTP provides a comprehensive set of guidelines for the import and export of goods and services. The DGFT is responsible for its formulation and implementation.<\/li><\/ul><\/li><li><strong>Responsibility of the Department of Commerce:<\/strong><ul><li>The Department of Commerce, entrusted with making India a major player in global trade, develops commodity and country-specific strategies. It aims to position India as a leader in international trade organizations.<\/li><\/ul><\/li><li><strong>Twin Strategy for Export Promotion:<\/strong><ul><li>The government adopts a twin strategy, focusing on both traditional and sunrise sectors of exports, including services. This approach aims to diversify and strengthen the export base.<\/li><\/ul><\/li><li><strong>Simplification of Business Processes:<\/strong><ul><li>A key focus is on simplifying business processes to reduce transaction costs and time, enhancing the global competitiveness of Indian exports.<\/li><\/ul><\/li><li><strong>Primary Objectives:<\/strong><ul><li>The overarching goals include accelerating economic activity, accessing global market opportunities, promoting sustained economic growth, strengthening agriculture, industry, and services, generating employment, and encouraging adherence to international quality standards.<\/li><\/ul><\/li><li><strong>Duration of the Policy:<\/strong><ul><li>The FTP is typically notified for a five-year duration. It undergoes annual updates on March 31, with changes taking effect from April 1.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strategic_Focus_Areas\"><\/span><strong>Strategic Focus Areas:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>GST Integration:<\/strong><ul><li>The policy emphasises helping exporters leverage benefits of the Goods and Services Tax (GST) regime to streamline taxation processes.<\/li><\/ul><\/li><li><strong>Export Performance Monitoring:<\/strong><ul><li>There is a focus on closely monitoring export performances, identifying areas for improvement, and addressing challenges hindering export growth.<\/li><\/ul><\/li><li><strong>Ease of Trading Across Borders<\/strong>:<ul><li>Efforts are made to improve ease of trading across borders, addressing logistical and regulatory challenges that hinder seamless export-import transactions.<\/li><\/ul><\/li><li><strong>Promoting Exports from Specific Sectors:<\/strong><ul><li>Emphasis is laid on promoting exports from Micro, Small, and Medium Enterprises (MSMEs) and labor-intensive sectors, aligning with the government&#8217;s inclusive growth agenda.<\/li><\/ul><\/li><li><strong>State Partnership in Exports:<\/strong><ul><li>States are actively involved in export promotion, developing strategies based on their unique strengths to contribute to national export goals.<\/li><\/ul><\/li><li>Challenges and Future Directions:<\/li><li><strong>Addressing Internal Constraints:<\/strong><ul><li>Despite external challenges, internal constraints such as infrastructure bottlenecks, high transaction costs, complex procedures, manufacturing limitations, and limited diversification in services exports are recognized and need attention.<\/li><\/ul><\/li><li><strong>Trade Facilitation Agreement (TFA)<\/strong>:<ul><li>India&#8217;s commitment to the Trade Facilitation Agreement at the World Trade Organization (WTO) is acknowledged, aiming to simplify and reduce transaction costs in international trade.<\/li><\/ul><\/li><li><strong>Subsidy Phasing Out:<\/strong><ul><li>India recognizes the need to eventually phase out subsidies, aligning with WTO rules. It acknowledges the importance of moving towards fundamental systemic measures for sustained trade practices.<\/li><\/ul><\/li><li><strong>Promising Product Groups:<\/strong><ul><li>The government is exploring promising product groups such as defense equipment, medical devices, agro-processing, technical textiles, and chemicals to diversify India&#8217;s export portfolio.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p>In conclusion, India&#8217;s Foreign Trade Policy serves as a dynamic framework, evolving to meet the challenges and opportunities of the global trade landscape. Its multifaceted approach aims to foster economic growth, enhance global competitiveness, and create a conducive environment for diverse sectors to thrive in the international market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Major_Initiatives_Under_the_Foreign_Trade_Policy_of_India\"><\/span><strong>Major Initiatives Under the Foreign Trade Policy of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Niryat Bandhu Scheme:<\/strong><ul><li>Objective: Mentoring budding exporters through counseling, training, and outreach programs.<\/li><li>Implementation: DGFT organizes structured outreach activities with the assistance of Export Promotion Councils, knowledge partners, Customs, ECGC, Banks, and concerned Ministries.<\/li><\/ul><\/li><li><strong>Duty-Free Import Authorisation (DFIA):<\/strong><ul><li>Purpose: Allows duty-free import of inputs required for the production of export goods.<\/li><li>Obligations: Importers must meet export obligations with a minimum value addition of 20%.<\/li><\/ul><\/li><li><strong>Export Promotion Capital Goods (EPCG):<\/strong><ul><li>Objective: Facilitates the import of capital goods to enhance India&#8217;s competitiveness.<ul><li>Benefits: Allows duty-free import of capital goods for pre-production, production, and post-production.<\/li><\/ul><\/li><\/ul><\/li><li><strong>Electronic Import Exporter Code (IEC)<\/strong>:<ul><li>Requirement: Mandatory export permit for carrying out exports and imports.<\/li><li>Facilitation: DGFT enables online filing of IEC applications for seamless processing.<\/li><\/ul><\/li><li><strong>Electronic Bank Certificate (e-BRC):<\/strong><ul><li>Purpose: Captures export proceeds details directly from banks through a secure electronic mode.<\/li><li>Advantages: Facilitates implementation of export promotion schemes without physical interfaces.<\/li><\/ul><\/li><li><strong>Exporter Importer Profile:<\/strong><ul><li>Functionality: Uploads various documents, reducing transaction costs and time.<\/li><li>Advantages: Eliminates the need to repeatedly submit documents to Regional Authority, streamlining processes.<\/li><\/ul><\/li><li><strong>Online Filing of Applications:<\/strong><ul><li>Facilitation: DGFT enables online filing of applications for IEC and various authorizations\/scrips.<\/li><li>Process: Applications are digitally signed, submitted electronically, and processed by Regional Authority.<\/li><\/ul><\/li><li><strong>Withdrawal of Seizure of Export Related Stock:<\/strong><ul><li>Guidelines: Agencies are advised against unnecessary seizures that hinder manufacturing activity.<\/li><li>Conditions: Seizures should be withdrawn within seven days unless serious irregularities are substantiated.<\/li><\/ul><\/li><li><strong>Round-the-Clock Customs Clearance:<\/strong><ul><li>Availability: 24*7 customs clearance at 19 seaports and 17 air cargo complexes.<\/li><li>Benefit: Merchant Overtime Charges (MOT) exempted for services provided by Customs officers at 24*7 Customs Ports and Airports.<\/li><\/ul><\/li><li><strong>Single Window Interface (SWIFT):<\/strong><ul><li>Launch: Facilitates electronic lodging of Integrated Declarations at a single point with Customs.<\/li><li>Advantages: Enables obtaining necessary permissions from regulatory agencies electronically.<\/li><\/ul><\/li><li><strong>Facilitating Export of Perishable Products:<\/strong><ul><li>System: Introduces a single-window system for the export of perishable agricultural produce.<\/li><li>Accreditation: Multi-functional nodal agencies accredited by APEDA to reduce transportation and handling costs.<\/li><\/ul><\/li><li><strong>Time Release Study:<\/strong><ul><li>Tool: Implements the World Customs Organization&#8217;s time-release study to evaluate Customs performance.<\/li><li>Purpose: Identifies bottlenecks in the international supply chain and constraints affecting Customs release.<\/li><\/ul><\/li><li><strong>Towns of Export Excellence (TEE):<\/strong><ul><li>Criteria: Specified towns with a goods turnover of Rs 750 Crore or more may be notified as TEE.<\/li><li>Benefits: Recognized associations receive financial assistance, and common service providers become eligible for Authorization under the EPCG scheme.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FOREIGN_TRADE_POLICY_2021-2026\"><\/span><strong>FOREIGN TRADE POLICY 2021-2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The FTP 2015-20 came into effect on the 1st of April 2015 and the same was extended by one year till 31 March 2021, due to the Covid-19 pandemic.&nbsp;<\/p>\n\n\n\n<p>New Foreign Trade Policy 2021-26\u2033. which have come into effect from 1st April 2021 for a period of five years and will strive to make India a leader in the area of international trade and channelize the synergies gained through merchandise and services exports for growth and employment with a goal to make India a USD 5 Trillion economy.<\/p>\n\n\n\n<p>District Export Hubs Initiative will form an important component of the new Foreign Trade Policy.&nbsp;<\/p>\n\n\n\n<p><strong>The Department of Commerce<\/strong> through the Regional Authorities of DGFT has engaged with State\/UT Governments to take forward this initiative in the districts and enable its implementation in a phased manner, with the objective of mobilizing the potential of each district of the country to achieve its potential as an export hub.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expectations_from_FTP_2021-2026_A_Road_to_5_Trillion_Economy\"><\/span><strong>Expectations from FTP 2021-2026: A Road to $5 Trillion Economy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>1. WTO-Compliant Tax Incentives:<ul><li>Background: With incentives under MEIS and SEIS in doubt, the focus is on WTO-compliant tax benefits.<\/li><li>Initiative: The introduction of the Remission of Duties or Taxes on Export Products (RoDTEP) scheme from January 1, 2021, replacing MEIS.<\/li><\/ul><\/li><li>2. Easy Credit Access:<ul><li>Demand: MSMEs, particularly, seek improved credit access.<\/li><li>Potential Solution: Proposals to raise borrowing limits at the Export-Import Bank of India to address the reluctance of formal financial institutions.<\/li><\/ul><\/li><li>3. Infrastructure Upgrade:<ul><li>Learning from China: Recognizing China&#8217;s success, calls for upgrading India&#8217;s infrastructure, including ports, highways, and testing and certification centers.<\/li><li>Existing Scheme: The Trade Infrastructure for Export Sector, launched in 2017, might be extended to further support infrastructure development.<\/li><\/ul><\/li><li>4. Less Subsidy, More Support:<ul><li>Shift in Approach: Move from subsidies to support focused on quality, technology, and scale of production.<\/li><li>Suggested Focus Areas: Skill development programs, technological upgradation, and incentives for research and development.<\/li><\/ul><\/li><li>5. Tax Breaks:<ul><li>Demand: Easier and lower taxes to replace subsidies.<\/li><li>Corporate Tax Rates: Calls for the reduction of corporate tax rates and simplification of duty structures.<\/li><li>Import Duty Structure: Simplification based on higher duties on finished goods and lower duties on intermediates and raw materials.<\/li><\/ul><\/li><li>6. Digitization and E-Commerce:<ul><li>Post-COVID Adaptation: Acknowledges the disruption caused by COVID-19 and emphasizes modern trade practices.<\/li><li>Digital Processes: Recommends digitization of common import-export processes.<\/li><li>E-commerce Support: Suggestions include e-commerce export platforms under Niryat Bandhu, e-commerce export promotion cells, and e-Commerce Export Zones.<\/li><\/ul><\/li><li>7. Export Awareness:<ul><li>Gap Addressing: Recognizes that lack of awareness can hinder export opportunities.<\/li><li>Government Workshops: Proposes provisions for government workshops and awareness programs on international laws, standards, global markets, and intellectual property rights.<\/li><\/ul><\/li><li>8. Import Wishlist:<ul><li>Import Community Expectations: Desires self-certification for importing capital goods and approval-based import of prohibited items.<\/li><li>Ease of Processes: Aims for simplified import processes to encourage smoother transactions.<\/li><\/ul><\/li><li>9. Road to $5 Trillion by 2025:<ul><li>Ambitious Target: India aspires to be a $5-trillion economy by 2025.<\/li><li>Strategic Goals: GDP growth rate of 8% or more, tripling exports to $1 trillion by 2025.<\/li><li>Challenges: Addressing historical export levels around $300 billion and the impact of the pandemic on exports.<\/li><\/ul><\/li><li>10. High-Level Advisory Group Recommendations:<ul><li>Reforms: Urgent labor law reform, easing regulatory controls, lowering the cost of capital, and sector-specific strategies.<\/li><li>FDI Committee: Formation of a special committee for quick decisions on foreign direct investment.<\/li><\/ul><\/li><li>11. FTP 2021-2026 Commitments:<ul><li>District Export Hubs: Identifying products and services, mapping GI products, and setting up promotion panels and action plans at the district level.<\/li><li>Addressing Imbalances: Commitment to reducing domestic and overseas constraints, enhancing ease of doing business, and creating efficient logistical infrastructure.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p>If FTP 2021-2026 aligns with these expectations and government commitments, it can play a pivotal role in steering India towards its ambitious $5-trillion economy goal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_Regarding_Foreign_Trade_Policy_of_India_A_Comprehensive_Overview\"><\/span><strong>FAQs Regarding Foreign Trade Policy of India: A Comprehensive Overview<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_is_the_Foreign_Trade_Policy_FTP_of_India\"><\/span>1. What is the Foreign Trade Policy (FTP) of India?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The FTP is a strategic roadmap designed by the government to promote domestic production and boost exports, contributing to economic growth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Who_administers_the_FTP_and_under_which_ministry_does_it_operate\"><\/span>2. Who administers the FTP, and under which ministry does it operate?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Directorate General of Foreign Trade (DGFT) administers the FTP, operating under the Ministry of Commerce and Industry.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_How_often_is_the_FTP_reviewed_and_why\"><\/span>3. How often is the FTP reviewed, and why?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The FTP is periodically reviewed to adapt to the changing domestic and international scenario and align with evolving economic needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_What_are_the_key_responsibilities_of_the_Department_of_Commerce_in_the_context_of_the_FTP\"><\/span>4. What are the key responsibilities of the Department of Commerce in the context of the FTP?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Department of Commerce aims to make India a major player in global trade, developing commodity and country-specific strategies and positioning India as a leader in international trade organizations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_What_is_the_primary_objective_of_the_FTP_in_terms_of_trade_facilitation\"><\/span>5. What is the primary objective of the FTP in terms of trade facilitation?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The FTP primarily aims to facilitate trade by reducing transaction costs and time, enhancing the global competitiveness of Indian exports.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_What_are_the_twin_strategies_adopted_by_the_government_for_export_promotion\"><\/span>6. What are the twin strategies adopted by the government for export promotion?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The government adopts a twin strategy, focusing on both traditional and sunrise sectors of exports, including services, to diversify and strengthen the export base.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_How_long_is_the_duration_of_the_Foreign_Trade_Policy_and_when_does_it_undergo_updates\"><\/span>7. How long is the duration of the Foreign Trade Policy, and when does it undergo updates?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The FTP is typically notified for a five-year duration and undergoes annual updates on March 31, with changes taking effect from April 1.<\/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=\"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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Mains Answer Writing Practice &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span>Visit our YouTube Channel &#8211;&nbsp;<a href=\"https:\/\/www.youtube.com\/@ShabbirsEduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s trade trends and policies hold immense importance not only for its own prosperity but also for the stability and evolution of the global marketplace<\/p>\n","protected":false},"author":17,"featured_media":30437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[261],"tags":[186,2281,232,213,140],"class_list":["post-30433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-geography-general-studies","tag-general-studies-1","tag-trade","tag-upsc","tag-upsc-notes","tag-upsc_preparation_strategy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/30433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=30433"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/30433\/revisions"}],"predecessor-version":[{"id":30438,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/30433\/revisions\/30438"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/30437"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=30433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=30433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=30433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}