Description
New Century Publications Foreign Trade of India and Foreign Trade Policy 2023 by Sury M M
Every sovereign state engages in some kind of foreign trade, i.e. exchange of goods and services between different countries in the form of imports and exports. Therefore, it becomes important for a country to make a policy to regulate its foreign trade. In India, Foreign Trade (Development and Regulation) Act, 1992, was enacted for regulating imports and exports after the implementation of a new economic policy that emphasized on liberalization, privatization and globalization of the Indian economy. According to the Act of 1992 [which replaced the Import and Export (Control) Act, 1947], the government is authorized to announce foreign trade policy for achieving certain objectives related to foreign trade.Foreign Trade Policy, 2023 (or in short, FTP, 2023) was notified by the Central Government on March 31, 2023, in exercise of powers conferred under Section 5 of the said Act of 1992, as amended from time to time. Ordinarily, government announces its foreign trade policy after every five years. The last foreign trade policy was notified for the period 2015-2020. Usually, foreign trade policy is announced on March 31 of every year and comes into effect from April 1 of the same year. However, due to Covid-19 pandemic, the announcement of a new foreign trade policy was delayed. The year 2020 had brought negative growth rate for the Indian economy. Due to the pandemic, the whole country was under lockdown and foreign trade reduced drastically. Hence, the announcement of a new foreign trade policy was delayed.It was only on March 31, 2023, that the government announced the Foreign Trade Policy (FTP), 2023. Foreign trade policy of a country is an important highlighter of trade-related objectives of the government.Unlike earlier time-bound foreign trade policies, FTP, 2023, is open-ended. In other words, the government has not outlined any specific time period of its operation. Government has clarified that it is a dynamic policy and has been kept open-ended to accommodate the emerging needs of time.As India is on a path to become a developed nation by 2047, the FTP, 2023, lays down a blueprint to integrate India with the global markets and make it a reliable and trusted trade partner. The policy calls for building a future-ready India and making it one of the top exporting countries of the world. Exports have become an important indicator of a country’s economic performance. Exports have acquired added significance in the wake of liberalization wave sweeping across the world.As a result of its sustained efforts, India achieved its highest ever exports of US$ 676 billion in 2021-22 and is well on its way to achieve the target of US$ 750 billion in 2022-23. As per the new foreign trade policy, the country has set an ambitious target of exports worth US$ 2 trillion by 2030.In recognition of the growing importance of foreign trade for the Indian economy, this book provides a comprehensive description and analysis of India’s foreign trade with focus on recent developments.