Foreign Trade Policy
”Critical analysis of new Foreign Trade Policy 2009-14 of Govt. of India”
The Foreign Trade Policy 2009-14 of the Govt. of India is a “holistic strategy, driving export growth to new markets and addressing issues of labour-intensive export and intensive export and transaction cost effectively.”
On trade climate and export target
The world has not witnessed in the last seven decades a situation as it has been in recent years and it is very important that the Government steps in the act as a facilitator to intensive exporters to get them out of what we may call the tsunami.
Objectives of last 2 policies of Foreign Trade of Govt. of India
1) 2004-2009
The last 5 years (2004-09) FTP was released on 1st September in the year 2004.
i) To double India’s share of global merchandise trade within next 5 years of policy and
ii) To act as an effective instrument of economic growth and generation of additional employment opportunity
We won commendably on both the fronts over the last five years as the performance bears out.
2) 2009-2014
The current new FTP of 5 years (2009-14) FTP was released late on 27th August, 2009.
There are three set targets.
i) In the short-term, to reach US $200 billion exports, growing 15 per cent over the next two years
ii) Over 2011-14 double the exports of goods and services from the current level, growing at 25 per cent over the three years.
iii) Long-term objective of 2020 – earmarked to double our Indian share of global trade in goods and shares from 1.65% to 3.2%.
Thrusts areas
This current Foreign Trade Policy 2009-14 concentrates on five specific main areas and it is in many ways different from what had been done in the past.
a) The first main pillar is stability and continuity in that
• it continued the existing DEPB scheme for one more year,
• extended 10A/10B IT exemption to EOUs and to SITP units to one year,
• increased the EPCG coverage
(i) to 95 per cent and
The Foreign Trade Policy 2009-14 of the Govt. of India is a “holistic strategy, driving export growth to new markets and addressing issues of labour-intensive export and intensive export and transaction cost effectively.”
On trade climate and export target
The world has not witnessed in the last seven decades a situation as it has been in recent years and it is very important that the Government steps in the act as a facilitator to intensive exporters to get them out of what we may call the tsunami.
Objectives of last 2 policies of Foreign Trade of Govt. of India
1) 2004-2009
The last 5 years (2004-09) FTP was released on 1st September in the year 2004.
i) To double India’s share of global merchandise trade within next 5 years of policy and
ii) To act as an effective instrument of economic growth and generation of additional employment opportunity
We won commendably on both the fronts over the last five years as the performance bears out.
2) 2009-2014
The current new FTP of 5 years (2009-14) FTP was released late on 27th August, 2009.
There are three set targets.
i) In the short-term, to reach US $200 billion exports, growing 15 per cent over the next two years
ii) Over 2011-14 double the exports of goods and services from the current level, growing at 25 per cent over the three years.
iii) Long-term objective of 2020 – earmarked to double our Indian share of global trade in goods and shares from 1.65% to 3.2%.
Thrusts areas
This current Foreign Trade Policy 2009-14 concentrates on five specific main areas and it is in many ways different from what had been done in the past.
a) The first main pillar is stability and continuity in that
• it continued the existing DEPB scheme for one more year,
• extended 10A/10B IT exemption to EOUs and to SITP units to one year,
• increased the EPCG coverage
(i) to 95 per cent and