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Ministry of Commerce plans to release new ‘five-year foreign trade policy’ in Sept

Ministry of Commerce plans to release new 'five-year foreign trade policy' in Sept

Ministry of Commerce plans to release a new ‘five-year foreign trade policy’ in Sept.

The commerce ministry is working to release the new ‘five-year foreign trade policy (FTP)’ before September 2022. An official said that the Districts as Export Hubs scheme would be part of that document, which aims to boost exports and create jobs.

The policy is being made by the directorate general of foreign trade (DGFT), which is part of the commerce ministry. The proposal will soon be sent to the finance ministry to ask for money for the scheme. The goal of the plan is to start with 50 districts that have products that can be made in large quantities and have a lot of export potential, the official said.

Also Read | India’s wheat export ban made global food market even more unstable: WTO.

The DGFT would choose these districts through a ‘challenge route,’ the official said, adding that states and districts that want to take advantage of the scheme’s financial incentives should compete for that. The country is made up of 750 districts.

‘It will be like a race between states and districts. We will give you clear instructions on how to do that. The plan will be put on the FTP. It will be run by the central government, which will pay for 60% of the total cost. The states will pay for the rest. We want to get the new FTP out before September,’ he or she went on to say.

A document from the Ministry of Commerce says that states need to be involved in export promotion activities because exports can’t grow exponentially without their help. The goal of the Districts as Export Hubs scheme is to promote exports, make things, and create jobs at the local level.

The 2015–20 foreign trade policy is in effect until September 2022. Due to the Covid-19 outbreak and the lockdown, the government extended this policy for another year until March 31, 2021. This happened on March 31, 2020. It was again put off until this September. In the policy, the government says that it will help exporters of both goods and services.

In 2021-22, the country exported a total of $420 billion worth of goods and $254.4 billion worth of services. The government hopes that by 2030, both goods and services will be worth $1 trillion when they are exported. Also Read | Domestic pepper prices began to feel burdened due to cheaper imports from Vietnam.

India is working hard to get free trade agreements with many countries and regions, including Canada, the UK, the European Union, and Israel, so it can send more goods abroad. India signed a trade agreement with Australia and put it into effect in May.