India’s new Foreign Trade Policy, under formulation, will come into effect
from April 1, 2021 for five years and will strive to make the country a leader
in international trade, the government said.
The information was given to the
Members of Parliament during a briefing
about the Foreign Trade Policy (FTP).
The Parliamentary Consultative Committee of the Ministry of Commerce and
Industry held a meeting on January 11th on the subject ‘New Foreign Trade
Policy 2021-26’. The meeting was chaired
by Minister of State for Commerce and Industry Hardeep Singh Puri, and attended
by Members of Parliament (MPs) and senior officers of the ministry.
“It was informed that the new Foreign Trade Policy will come into effect
from 1 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.
Under the new policy districts will be made the nodal point for setting up
export hubs. The concept is an important component of the policy, commerce
ministry which is piloting the policy said in a statement
objective, mobilising each district to achieve its potential as an export hub
The regional authorities of Directorate General of Foreign trade are in
touch with state governments and Union territory administrations to take
forward this initiative in the districts and enable the implementation of the
concept in a phased manner. The exercise is being undertaken with the objective
of mobilising each district to achieve its potential as an export hub.
A key driver for India to achieve the USD 5 trillion mark in an expedited
time frame would be boosting exports, both merchandise and services. This has
to be done through systematically addressing domestic and overseas constraints
related to the policy, regulatory and operational framework for lowering
transactions costs and enhancing ease of doing business, and creating a
low-cost operating environment through efficient logistical and utilities
infrastructure, the ministry said.
Meetings have been
held with stakeholders for the formulation of the new FTP.
Improvements in the operations of the domestic manufacturing and services
sectors in combination with efficient infrastructure support by the government
would result in correcting the imbalances within India and feed into the trade
policy, it added. Meetings have been held with stakeholders for the formulation
of the new FTP.
A Board of Trade meeting was held in December 2020 where inputs from state
governments and other stakeholders were received.
“In today’s meeting, Members of Parliament made valuable suggestions
regarding new Foreign Trade Policy 2021-26. Minister of State Puri welcomed
various inputs and suggestions of the MPs and informed that these will be
considered by the Ministry while preparing the new FTP,” the ministry said.
India’s FTP has
conventionally been formulated for five years at a time.
The Foreign Trade Policy 2015-20 came into effect on April 1, 2015 and the
same was extended by one year till March 31, 2021, due to the COVID-19