The government has decided to postpone the release of the new Foreign Trade Policy (FTP) and extend the existing one by six months due to global uncertainties and currency fluctuations.
The Union government on Monday decided to continue the existing foreign trade policy beyond October 1, 2022, based on consultations held with individuals, industry associations and industry bodies such as the FIEO (Federation of Indian Exporters Organisation) and EEPC (Engineering Export Promotion Council of India). ).
The government was expected to announce the new FTP by the end of September.
The government has indicated that something needs to be done for the service sector due to the current currency volatility as well as global uncertainty and hopes that the situation will be conducive for the new foreign trade policy in the next 6 months. month.
The current foreign trade policy (2015-20) has already been extended several times. While the industry has demanded a new foreign trade policy with a long-term vision after several rounds of consultations, the government expects to get more clarity with the 6-month delay.
The new policy is due to be introduced on April 1, 2023 and the government has indicated it is trying to remain responsive to exporters’ concerns.
The FTP provides guidelines for improving exports to stimulate economic growth and create jobs. It was first extended on March 31, 2020 for one year due to the coronavirus outbreak and lockdown.
Indian exports from April to August increased by 17.68% to $193.51 billion. Imports rose 45.74% to $318 billion, while the trade deficit in the first five months of the fiscal year widened to $124.52 billion.
The ongoing Russian-Ukrainian war has severely disrupted global supply chains and driven up commodity prices. The rupiah hit an all-time low of 81.67 on Monday against the US dollar amid an outflow of foreign funds.