India’s new foreign trade policy 2021-2026 will come into effect from April 1 2021, the federal Ministry of Commerce and Industry said on Wednesday.
The ministry said in a statement that a meeting of its parliamentary consultative committee was held Tuesday to brief members of parliament about the foreign trade policy (FTP).
“It was informed that the new FTP will come into effect from 1st April 2021 for a period of five years and will strive to make India a leader in the area of international trade.
“It will also channelise the synergies gained through merchandise and services exports for growth and employment with a goal to make India a 5 trillion dollar economy,” said the statement.
Ministry officials said the last five-year policy starting from April 1, 2015 was extended by one year until March 31, 2021 due to the ongoing COVID-19 pandemic.
“A key driver for India to achieve the 5 trillion dollar mark in an expedited time frame would be boosting exports, both merchandise and services,” the statement said.
The statement said achieving the goal involved addressing domestic and overseas constraints related to the policy, regulatory and operational framework for lowering transactions costs and enhancing ease of doing business.
It said it would also create a low cost operating environment through efficient, cost-effective and adequate logistical and utilities infrastructure.
“Improvements in the operations of the domestic manufacturing and services sector in combination with efficient infrastructure support by the government would result in correcting the imbalances within India and feed into the trade policy,” it noted.
The ministry also said district export hubs initiative will form an important component of the new policy.