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Source: The post is based on the article “Foreign Trade Policy extended for six months” published in PIB on 26th September 2022
What is the News?
The Ministry of Commerce has announced the extension of the existing Foreign Trade Policy (2015-20) by another six months.
What is Foreign Trade Policy?
Foreign Trade Policy provides a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country.
It focuses on supporting both the manufacturing and services sectors with a special emphasis on improving the ease of doing business.
What are the key features of the Foreign Trade Policy(2015-20)?
Why has the existing Foreign Trade Policy been extended again?
The government has received feedback from stakeholders against unveiling any long-term strategy such as a new Foreign Trade policy amid the volatile geopolitical situation, supply chain disruptions, currency depreciation and dwindling exports.
What has been the trend in India’s exports and imports?
India’s merchandise exports in August 2022 saw less than 2% year-on-year growth at $33.92 billion while imports surged 37.28%.
Although crude oil prices have eased to a great extent, the depreciation of rupee against the dollar is one of the reasons for surging imports.
Note: India is the third-largest consumer of fossil fuel in the world after the US and China. It imports 85% crude it processes and pays in dollars.