Know about India’s Dynamic Trade Policy Created History in Foreign Trade

India has long been a hub of international trade and commerce, dating back to ancient times when it served as a major trading center for spices, textiles, and other goods. Today, India is one of the world’s fastest-growing economies and a major player in the global trade landscape. The country’s dynamic trade policy has been a key driver of this growth, allowing Indian businesses to expand their reach and compete on a global scale.

Over the past few years, India’s trade policy has undergone a significant transformation, driven by the government’s “Make in India” initiative and a push to increase exports. In 2015, the government launched the “Foreign Trade Policy (FTP) 2015-20,” which aimed to increase India’s exports of goods and services to $900 billion by 2020.

One of the key features of the FTP was the introduction of the Merchandise Exports from India Scheme (MEIS), which provided exporters with duty credits that could be used to pay for customs duties on imported goods or sold in the open market. This helped to reduce the cost of exporting goods and made Indian products more competitive in international markets.

Another important aspect of the FTP was the focus on promoting exports from certain sectors, including textiles, electronics, and pharmaceuticals. The government provided incentives to companies operating in these sectors, such as subsidies for research and development and reduced taxes on profits.

The FTP also included measures to simplify trade procedures and reduce bureaucratic hurdles. For example, the government introduced the “Single Window Interface for Facilitation of Trade” (SWIFT) platform, which allowed exporters and importers to submit all necessary documents and obtain approvals online, streamlining the entire trade process.

Thanks to these measures, India’s exports grew from $310 billion in 2014-15 to $330 billion in 2018-19, despite a global slowdown in trade. India’s exports have continued to grow even during the COVID-19 pandemic, with the government introducing several measures to support businesses during this challenging time.

In addition to boosting exports, India’s trade policy has also focused on attracting foreign investment. The government has liberalized several sectors, including defense, railways, and construction, allowing foreign companies to invest in these areas. The “Make in India” initiative has also encouraged foreign companies to set up manufacturing facilities in India, providing them with a competitive advantage in the domestic market.

India’s dynamic trade policy has created history in foreign trade, making it a more attractive destination for international businesses and helping Indian companies to compete on a global scale. As India continues to grow and develop, its trade policy will undoubtedly play a key role in shaping its future as a major player in the global economy.

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