Validity of Foreign Trade Policy, 2015-2020 further Extended by DGFT
Recently, the government has decided to extend the “Foreign Trade Policy, 2015-20” till 30 September 2022.
- It may be noted that the Directorate General of Foreign Trade (DoFT), functioning under the Ministry of Commerce and Industry, is preparing a new foreign trade policy.
- The current FTP, 2015-20 period was to expire on 31 March 2022. Earlier, due to the outbreak of Corona virus and the lockdown, the period of this policy was extended.
- The Foreign Trade Policy provides guidelines for increasing exports with the aim of promoting economic growth and generating employment.
- FTP 2015-20 has provided a framework to increase exports, generate employment and increase value addition.
Two new schemes were announced under FTP 2015-20 –
- Merchandise Exports from India Scheme (MEIS): It was announced for the export of specific goods in particular markets.
- Service Export from India Scheme (SEIS): It was announced to increase the export of notified services.
There will be different focus areas for the new foreign trade policy. This policy will be comprised of digital information. This will be in line with globally accepted policy norms. At the same time, such markets, which have not yet been penetrated properly, (eg- Africa), will explore the possibilities there. It will also focus on competitiveness and market access (especially in the service sector).
Challenges before trade policy
- There is increasing multilateral pressure to rationalize export promotion schemes in line with WTO norms.
- Ensuring effective coordination between the three regulatory bodies DGFT, Customs and GST Council related to foreign trade is also a big challenge.
- There is also discrepancy in the Indian trade classification nomenclature. In India, it is eight-digit, while most countries already follow the 10-digit tariff nomenclature.
Source- The Hindu