New Foreign Trade Policy aims to make India a $5-trillion economy
The District Export Hubs initiative will form an important component of the new Foreign Trade Policy
India’s new Foreign Trade Policy (FTP) will channelize the synergies gained through merchandise and services exports for growth and employment with an eye on making India a USD 5 Trillion economy.
The Parliamentary Consultative Committee of the Commerce and Industry Ministry met on Tuesday to deliberate upon the FTP which will come into effect on April 1, 2021.
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, a release of the Ministry of Commerce and Industry read.
Last year, ahead of the Union Budget for 2020-21, Prime Minister Narendra Modi had called for focussing efforts to make India a USD 5 Trillion economy.
One of the major areas for taking India beyond the USD 5 Trillion was to boost its exports. The new FTP reckons that exports could be boosted by systematically addressing domestic and overseas constraints related to the policy and regulatory and operational framework for lowering transaction costs.
The FTP also calls for a creation of District Export Hubs, an initiative that will form an important component of the new FTP.
The Department of Commerce will engage with states and union territories to take forward the objective of mobilizing the potential of each district of the country to achieve its potential as an export hub.
The Ministry of Commerce and Industry’s FTP 2015-2020 came into effect on April 1, 2015 and was extended by one year till March 31 this year owing to the Covid-19 pandemic.
India’s overall exports together of merchandise and services in April-November 2020-21 were estimated to be USD 304.25 billion, a dip of 14 per cent compared to last fiscal. The imports were worth 290.66 billion, a decrease of 29.96 per cent from last year. It registered a trade surplus of USD 13.59 million in the said period.