HPAS/Allied Mains 2022 Answer Writing Challenge Day 186: Model Answer

QUESTION: Write four Important features of new trade policy of India. (4 marks/ 60 words)

Answer:  

India’s Foreign Trade Policy (FTP) has conventionally been formulated for five years at a time. The FTP 2015-20 came into effect in April 2015 and the same was extended by one year till 31 March 2021, due to the Covid-19 pandemic.

The new FTP came into effect from 1 April 2021 for a period of five years. It will strive to make India a leader in the area of international trade and channelize the synergies gained through merchandise and services exports for growth and employment with a goal to make India a USD 5 Trillion economy.

Important features of new trade policy:

1. District Export Hubs: The government will identify potential products and services in each district, identify agricultural and toy clusters, map GI products, set up district export promotion panels and district export action plans as part of this initiative targeted at small businesses and farmers.
2. Correcting imbalances: To correct export/import imbalances in India’s international trade processes.
3. Enhancing ease of doing business and removing bottlenecks related to Trade: Reducing domestic and overseas constraints related to the policy, regulatory and operational framework for lowering transaction costs and enhancing ease of doing business.
4. Improving Logistics: Creating efficient, cost-effective and adequate logistical and utilities infrastructure.
5. MSME: To Facilitate alternate credit avenues to MSMEs.

If FTP 2021-2026 delivers on the government’s commitments and lives up to industry’s expectations, India as a $5-trillion economy is not a dream too far.