Extension of Foreign Trade Policy 2015-20 – Update (September, 2022)

September 28, 2022

The current Foreign Trade Policy has been extended by six months due to currency volatility and global uncertainty.

Key facts

Foreign Trade Policy 2015-20 has been extended for the period of six months until March 2023.
This extension will come to effect from 1^st of October 2022.
It is being extended in view of the volatile global economic situation.
Currently, there are fears of recession in major economies like the United State and Europe.
This has resulted in the rapid withdrawal of investments and foreign funds outflow in India.
Geopolitical crisis caused by the Ukraine war, inflation and monetary policy tightening are weakening the rupee against the US dollar.
Currently the USD is at a 22-year high and the Indian Rupee has hit an all-time low of 81.6 against the dollar.
Hence, the current geo-political situation is not favorable for the adoption of long-term foreign policy FTP 2022-27.
The Foreign Trade Policy 2015-20 provides the framework for increasing exports of goods and services and focuses on improving ease of doing business in India.
It was earlier meant to continue until 2020. However, it was extended several time because of the COVID-19 pandemic and other issues.

About Foreign Trade Policy (2022-27)

The Foreign Trade Policy (2022-27) was announced in 2020 but its adoption was deferred because of disruptions and economic uncertainty caused by the COVID-19 pandemic. It was expected to be launched on October 1, 2022. However, the extension of the FTP 2015-20 delayed the adoption again. The objective of FTP 2022-27 is to provide strategy to increase India’s share in the global trade to 10 per cent by 2047 and 3 per cent by 2027 from the existing 2.1 per cent. It also envisages building 100 Indian brands as global champions and gain 10 per cent share in creative economy and niche products. Pharmaceuticals, gems and jewellery, marine and agriculture, textiles, leather, engineering goods, electronics and telecom products and chemicals will be focus sectors of this policy.

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