The Government of India on 27-9-22 extended the existing Foreign Trade Policy (2015-20) up to which one of the following on account of volatile global economic and geo-political situation and currency fluctuations?
March 2023
Understanding India's Foreign Trade Policy Extension
The question asks about the extension of India's existing Foreign Trade Policy (2015-20) which was announced on September 27, 2022. This decision was made considering the challenging global economic climate, geopolitical tensions, and fluctuations in currency markets. The extension aimed to provide stability and continuity to India's foreign trade activities during this uncertain period.
The Foreign Trade Policy (FTP) sets out the framework for boosting exports and trade in India. The policy document for 2015-20 was originally set to expire but was extended multiple times before the announcement on September 27, 2022.
Details of the Foreign Trade Policy (2015-20) Extension
On September 27, 2022, the Government of India announced that the Foreign Trade Policy (2015-20), which had been extended previously, would be extended once again. The primary reasons cited for this extension were:
- Volatile global economic situation
- Geopolitical uncertainties
- Currency fluctuations
These factors created an environment where a new, comprehensive policy might not be effectively implemented immediately. Therefore, extending the existing policy was seen as a practical step.
The specific extension announced on September 27, 2022, prolonged the validity of the Foreign Trade Policy (2015-20) up to a certain date. Let's look at the possible options provided:
- December 2022
- March 2023
- September 2023
- December 2023
Based on the announcement made on September 27, 2022, the Foreign Trade Policy (2015-20) was extended up to March 31, 2023.
This extension gave the government more time to assess the global situation and formulate a new Foreign Trade Policy. It also provided continuity for businesses involved in international trade, allowing them to continue operating under known rules and regulations.
Impact of Extending the Foreign Trade Policy
Extending the Foreign Trade Policy helps maintain policy stability during times of economic and political uncertainty. Businesses benefit from predictable regulations, which is crucial for planning and executing trade operations. It avoids disruption that could arise from introducing a completely new policy during a volatile period.
The extension up to March 2023 allowed stakeholders to prepare for the eventual introduction of a new policy while navigating the immediate global challenges.
Revision Table: Key Dates for Foreign Trade Policy (2015-20)
| Policy Period (Original) | Announcement Date of Extension (Specific) | Extended Validity Upto | Reason for Extension (General) |
|---|---|---|---|
| 2015-2020 | September 27, 2022 | March 31, 2023 | Global economic/geopolitical volatility, currency fluctuations |
Additional Information: Foreign Trade Policy in India
The Foreign Trade Policy is a crucial document formulated by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, Government of India. It provides guidelines and strategies for promoting exports and imports, aiming to boost economic growth and create employment.
Key objectives of India's Foreign Trade Policies typically include:
- Facilitating exports and imports.
- Improving India's competitiveness in global markets.
- Promoting diversification of markets and products.
- Simplifying procedures and reducing transaction costs.
- Generating employment opportunities.
The policy often includes various schemes and incentives for exporters, such as duty exemption schemes, export promotion capital goods (EPCG) scheme, and Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, although the specific details and availability of these schemes can change with each policy iteration or amendment.
Understanding the Foreign Trade Policy is essential for businesses engaged in or planning to enter international trade.
Important Questions from India’s foreign trade policy
Which of the following is true about India Trade Policy (Export-Import), 2015-2019?
a) Doubling the exports (both merchandise and services)
b) Achieve 3.5% share in global exports
c) Introduced two new schemes (MEIS and SEIS)
d) Introduced simplified Aayat-Niryat Form
Choose the correct answer from the following:
Foreign trade can contribute manifold to the growth. With reference to the role of foreign trade in economic development, which of the following statements is correct?
I. It enhances the welfare of domestic workers.
II. It helps to reduce poverty completely in all developing countries.
- Which of the following acts governs the anti-dumping duty in India?
- As per the Foreign Trade Policy 2015-2020, a three star export house should have :
(1) Export performance (FOB/FOR) of US $ 100 million during current and previous two years.
(2) Export performance (FOB/FOR) of US $ 500 million during current and previous two years.
(3) Export performance (FOB/FOR) of US $ 1000 million during current and previous two years.
(4) Export performance (FOB/FOR) of US $ 2000 million during current and previous two years. Under the Foreign Trade Policy 2015-2020, following additional ports are allowed for export and import :
(a) Calicut Airport, Kerala
(b) Rajkot Airport, Gujarat
(c) Arakonam ICD, Tamil Nadu
(d) Ludhiana Airport, Punjab
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