In India, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, is in the process of formulating the new Foreign Trade Policy (FTP), expected to be rolled out in April 2022 and applicable for the succeeding five years.

India’s Foreign Trade Policy (FTP) provides the basic framework of policy and strategy for promoting exports and trade. The current Foreign Trade Policy (2015-20) focusses on improving India’s market share in existing markets and products as well as exploring new products and new markets.

The Foreign Trade Policy (FTP) was introduced by the Government to grow the Indian export of goods and services, generating employment and increasing value addition in the country. The Government, through the implementation of the policy, seeks to develop the manufacturing and service sectors.

India’s Foreign Trade Policy aims to (1) increase the country’s share of global trade from the current 2.1 percent to 3.5 percent and (2) double its exports to $900 billion by 2020.

Commerce Ministry hopes to study impact of recently announced schemes. The Ministry of Commerce & Industry is considering postponing the new five-year foreign trade policy by a further six months to April 1, 2022 instead of October 1, 2021 as planned.

According to the Ministry of Commerce and Industry, India’s overall exports between April 2021 and August 2021 were estimated at US$ 256.17 billion (a 44.04% YoY increase). Whereas overall imports between April 2021 and August 2021 were estimated at US$ 273.45 billion (a 64.18% YoY increase).

Foreign Trade Policy is a set of guidelines and instructions established by the DGFT in matters related to the import and export of goods in India. The Government of India, Ministry of Commerce and Industry announces Export Import Policy every five years.

There are three types of international trade: Export Trade, Import Trade and Entrepot Trade. Export and import trade we have already covered above.

The foreign trade policy of India is based on the following major objectives as follows: To enable substantial growth in exports from India and import to India to boost the economy. To at least double the percentage share of global merchandise trade conducted within the next five years. To improve the balance of payment and trade.

Indian foreign policy today aims to enhance its power and influence in the world by enhancing bilateral relation and cooperation with US, EU, China and Russia and by means of engaging and actively participating in regional alliances and international forum and dynamically using its soft and responsible power.

The Government of India, Ministry of Commerce and Industry announced New Foreign Trade Policy on 01st April 2015 for the period 2015-2020, earlier this policy known as Export Import (Exim) Policy.

There is not much difference between Foreign Trade Policy and Exim Policy. They are basically two names for the same policy. They are basically two names for the same policy. It was in 2004 that Commerce and Industry Minister Kamal Nath decided it would be more appropriate to call the policy the foreign trade policy.