Govt says New Foreign Trade Policy will be rolled out from 1 April 2021

Govt says New Foreign Trade Policy will be rolled out from 1 April 2021

Union Ministry of Commerce and Industry (Commerce Ministry) has said that the new Foreign Trade Policy 2021-2026 (FTP) of India is under formulation, it will be effective from 1 April 2021 and attempt to make India a leader in international trade

The meeting was chaired by the Minister of the Commerce Ministry Hardeep Singh Puri and attended by Members of Parliament (MPs) and senior officers of the Ministry. The Commerce Ministry stated, "It was informed that the District Export Hubs Initiative will form an important component of the new FTP."

It was further stated, "It was informed that the new FTP 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."

It will act as a key driver for India to achieve the USD 5 trillion mark in an expedited time frame and would boost exports, both merchandise and services. The policy shall comprise various methods to ensure smooth and fast growth of the nation through systematically addressing domestic and overseas constraints related to the policy, cost-effective, adequate logistical and utility infrastructure, etc.

The FTP will also ensure the improvement of operations of the domestic manufacturing and services sector in combination with efficient infrastructure support by the government. It would result in correcting the imbalances within India and feed into the trade policy.

The Commerce Ministry said that the Department of Commerce through the Regional Authorities of DGFT has engaged with State/Union Territory Governments to take forward this initiative in the districts and enable its implementation in a phased manner, to mobilize the potential of each district of the country to achieve its potential as an export hub.

For the formulation of a new FTP, a meeting will be conducted with the shareholders. A Board of Trade meeting was held in December 2020 where State Governments gave many inputs to the stakeholders regarding the new FTP. Further, meetings were conducted with Chambers of Commerce, Industry Associations, and Export Promotion Councils for seeking their inputs.

Trade Notice was issued for inviting suggestions from various stakeholders and many suggestions have been received. While formulating the new FTP, all the suggestions will be examined.

In the meeting, MPs made valuable suggestions regarding the new FTP 2021-26. Mr Puri welcomed various inputs and suggestions of the MPs and informed them that these will be considered by the Commerce Ministry while preparing a draft of the FTP. He also invited all MPs to give further inputs on the same.