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National Foreign Trade PolicyNational Foreign Trade Policy

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Study TopicsStudy Topics

Evolution.Uniqueness.Past and the Present.Achievements.The power and Limitations.Direction

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Ministry of Commerce and Industries

Executing Department

Executing Department

DGFTDGFT

Policy Making MinistryPolicy Making Ministry

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Policy Objective Policy Objective

To stop and reverse delaying trends of To stop and reverse delaying trends of exports and provide support to sectors hit exports and provide support to sectors hit by recession. by recession.

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Hit Areas Specially In IndiaHit Areas Specially In India

Evolution.Uniqueness.Past and the Present.Achievements.The power and Limitations.Direction

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Global Trade This YearGlobal Trade This Year

World Bank Estimate 53 M fall below poverty line. 1 Billion people would go hungry. Decline in traditional exports market. Countries have resorted to protectionist measures- Barriers to trade. We don’t know the recovery ‘U’ Shape or ‘V’ Shape or ‘L’ Shape.

. .

Declining by 9%

IMF Declining by 15%

WTO

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Pre Policy Announcement by Ministry of Pre Policy Announcement by Ministry of FinanceFinance

Series of measuresCRR: Reduces to 5%SLR : 24%

Reverse Ratio Rates and the Repo Rates slashed.

SIDBI,NHB,EXIM Bank extra amount infused..

Result:- July Industrial Production at 7% and core sectors upwards

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Go Back to Previous PolicyGo Back to Previous Policy

2004: Two ObjectiveA) To double our percentage share of Global

merchandize in 5 years.B) Trade expansion through economic grwoth and

employment.

Result:- 2008-09 : US $ 168billions Global Market Share:- 0.83 % in 2003-04 to 1.45% in 2008-9.

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Results continued….Results continued….

Commercial services to 2.8%.Employment to 14 Millions as a result of exports

in five years.

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Other DirectionsOther Directions

SEZ Act : Encouraging result. Approvals : 577 zones.

350 notified. People employed : 3,00,000.

98 zones. Physical exports from Rs. 66,000 crores in 2007-2008 to Rs 99689

crores in 2007-2008 .

50% growth in a year. SEZ exports in the 5 years have grown : 620 FDI flow to zones US $ 2.43 billion.

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Current policy target Current policy target

To achieve 15% over 2010-11.

Target Us $ 200 billion by march 2011. In three years, high growth of 25%. By 2014,double the exports of goods and

services. Long term policy objectives to double in global

trade by 2020.

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Policy environmentPolicy environment

Diversification

Three pillars of the policyF

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Mar

ket

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They support to achieve those objectives

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SupportsSupports

Improvement in export infrastructure. Lowering transaction cost. Full refund of all indirect taxes and levies.

All are determined to build confidence during the period of stress.

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Special thrust Special thrust

Employment- oriented sectors.

Textiles.

Leather.

Handicraft.

Handlooms

Gem and jewellery.

Knitwear.

Timely availability of dollar Credit committee is constituted.

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IncentivesIncentives

Continuation of DEPB scheme till 2010. Income tax benefits U/S 10(A) for IT industry and U/S

10(B) for 100% EOU till 2011 . Enhanced insurance cover under ECGC scheme till

march 2010.Value addition, minimum 15% on imported inputs under

advanced authorization scheme.

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Market and promotion aspectsMarket and promotion aspects

Expand to emerging markets- - Africa,lac,oceania and cis

Offset inherent disadvantages - -credit risks and high trade costsEncourage production and zero duty epcgPromotion of products from north –east regionAdditional/Resource allocation of MDA and MAI

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Comprehensive economic partnership agreement with south korea

The trades in goods agreement with asean from july 2010- it’s a part of look easy policy

Mercosur preferential trade agreement has been concluded

Commited to sucessful conclusion of doha round

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Brand india driveBrand india drive

Respond to the aspiration of millions of people of G17

Brand India shows organised across the worldFavour of rule based .fair and equitable global

regime

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Policy on competitivenessPolicy on competitiveness

Technology upgradation and reduction of costsPromoting import of capital goods-EPCGExport performance and status holdersUpgradation of export sector infrastructureTowns of export excellence and additional

focussed support

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Specially for MSMESpecially for MSME

Rights through trade remedy instruments under WTO

Directorate of trade remedy measuresIndia inter diamond trading hub –clusters Special infrastructure – additional ports,

EDI,single window ,greater transparency etc

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THANKS & QUERIES

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