State the objectives of the foreign trade policy from 2015-2020. Also explain the frame work of the foreign trade policy, regarding enhancement and promotion of the exports.
CS Executive · Economic and Commercial Laws · PYQS · December 2020
State the objectives of the foreign trade policy from 2015-2020. Also explain the frame work of the foreign trade policy, regarding enhancement and promotion of the exports.
Answer & Explanation:
The focus of Foreign Trade Policy has been to promote a framework of rules and procedure for exports and imports and a set of incentives for promoting exports. The India's Foreign Trade Policy for 2015-2020 seeks to achieve the following objectives: To provide a stable and sustainable policy environment for foreign trade in merchandise and services; To link rules, procedures and incentives for exports and imports with other initiatives such as "Make in India", "Digital India" and "Skills India" to create an "Export Promotion Mission" for India; To promote the diversification of India's export basket by helping various sectors of the Indian economy to gain global competitiveness with a view to promoting exports; To create an architecture for India's global trade engagement with a view to expanding its markets and better integrating with major regions, thereby increasing the demand for India's products and contributing to the government's flagship "Make in India" initiative; To provide a mechanism for regular appraisal in order to rationalise imports and reduce the trade imbalance. The frame work of the Foreign Trade Policy, regarding enhancement of and promotion of the exports: Employment creation in both manufacturing and services through the generation of foreign trade opportunities Zero defect products with a focus on quality and standards; A stable agricultural trade policy encouraging the import of raw material where required and export of processed products; A focus on higher value addition and technology infusion; Investment in agriculture overseas to produce raw material for the Indian industry; Lower tariffs on inputs and raw materials; and Development of trade infrastructure and provision of production and export incentives. Additionally, the Export from India Schemes is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs involved and to provide exporters a level playing field. There are two schemes for exports of Merchandise and Services respectively. They are (i) Merchandise Exports from India Scheme (MEIS), (ii) Service Exports from India Scheme (SEIS).
Topics: Foreign Trade Policy
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