New Foreign Trade Policy

The Union Ministry of Commerce and Industry recently announced that the new Foreign Trade Policy. 2021-26 is to come into effect from April 1, 2021.

What is the goal of New Foreign Trade Policy?

To make India a 5 trillion USD economy.

What are the Key Highlights of the new Foreign Trade Policy?

• The District Export hubs are to play a major role in the new Foreign Trade Policy.
• The policy will aim to boost exports.
• It will enhance ease of doing business.
• It will bring improvements in the operations of domestic manufacturing and services sector through infrastructure support.
• The policy will bring changes to regulatory and operational framework and lower transactional costs.

Who are the largest trading partners of India?

Bangladesh, UK, USA, Bhutan, UAE, Switzerland, Saudi Arabia, Switzerland, Israel, Nepal, Singapore, Hong Kong, Germany, Iraq.Which is the biggest export of India?

Pharmaceuticals

By which year has India set to achieve the target of 5 trillion USD?

2024

Can India achieve the target of 5 trillion USD?

If India grows at 12% nominal growth then from the 2018 levels of 2.7 trillion USD, India can achieve 5 trillion USD by 2024.

What are challenges India should address to become a 5 trillion USD economy?

• Under-employment.
• Slowdown in agriculture
• Funding issues
• Slow pace of infrastructure development
• Export issues

What was the previous Foreign Trade Policy?

The previous foreign trade policy was implemented between 2015 and 2020. This policy aimed to boost “Make in India” initiative. The policy merged five different schemes under “Merchandise Export from India Scheme” (MEIS). The five different schemes were Market Linked Focus Product Scheme, Focus Product Scheme, Focus Market scheme, VKGUY and Infrastructure Incentive Scrip. Also, the Served from India scheme was replaced with Service Exports from India Scheme.

Month: Current Affairs - January, 2021