27 September , 2022 Fdiindia
Foreign Trade Policy Extended, Major Components of Foreign Trade Policies
The current foreign policy extended another 6 months by the Government till March 2023 on accounts of volatile global and economic reforms and currency fluctuations. The current foreign trade policy was to end on September 30 after it was extended in April.
The latest extension comes amid Inda's export growth slowing. India's goods exports rose by 1.62% in august, while the trade deficit more than doubled itself by $27.98 billion. "We will have to defer the release of the new policy. The existing policy will be continued," said Amit Yadav, additional secretary in the Department of Commerce. He said there were demands from industry associations and export promotion councils to extend the policy and defer a new policy at this time of global uncertainties and currency fluctuations.
There also has been a view to aligning the rollout of the new policy with the new financial year. The DGFT will issue a notification on the issue.
To understand the Foreign Trade Policy and its implications better, here are a few components of the FTP policy.
Based on the economic circumstances and conditions, The Government decides which industries need promotion and have a profound future in global trade. Based on these readings, the Government designs a policy to help these industries convey better trade worldwide.
Duration of the policy also depends upon the analysis of the conditions globally, whether they are conducive to the business the domestic policy encourages to harbor or not. If not, the foreign policy is changed to adapt to the changing forces of the market.
Policies such as the current one have major sub-policies that help improve the ease of business. For example, the Nirayat Bandhu Scheme helps budding exporters on the intricacies of the trade. This is done with the help of counseling, training, and outreach programs.
In Recent developments, Exporters have been provided provisions to upload copies of required documents online filing system. These documents commit to the Fixation of norms under Advance Authorization by Norms Committees.
The exporters are not anymore required to submit hard copies of application other than agricultural drawings, machine drawings, etc., which is difficult to scan and upload. Instead, the applications will be processed online.
The DGI has initiated an EDI system for seamless data transfer amongst trade parties to promote good governance and facilitate good management. A secured EDI message exchange system for activities connected with documentation customs, banks, and EPCs. This further streamlines the process, promoting a safe and smooth trade experience.
Seizures of stock and manufactured goods should be abstained from as it hampers the exporters' productivity and brings them in jeopardy. However, certain agencies are still entitled to conduct the seizure based on prima facie evidence of serious irregularity. The seizures should be withdrawn within seven days unless the defaults are substantiated.
With the global economic waters bringing in heavy tides, it's possible that the same FTP might help us until the financial situation settles down and is more conducive to business. Until then, India can work on stabilizing the currency against the rising dollar and improve upon its liquidity emerging deficit.
RBI Might Need Measures to Boost Forex Reserves Amid the Indian Rupee’s Fall
SafeGuard Probe Initiated to Investigate the Sudden Jump in Imports of Certain Plastics