Government Likely To Extend Current Foreign Trade Policy
Container ship sits docked at the Jawaharlal Nehru Port, operated by Jawaharlal Nehru Port Trust (JNPT), in Navi Mumbai, Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)  

Government Likely To Extend Current Foreign Trade Policy

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The government is expected to further extend the existing foreign trade policy, which is scheduled to lapse from April 1 this year, for few more months, an official said. FTP provides guidelines for enhancing exports to push economic growth and create jobs. On March 31, 2020, the government had extended the Foreign Trade Policy 2015-20 for one year till March 31, 2021, amid the coronavirus outbreak and the lockdown.

The official said that stakeholder consultation is going on for the new policy and the existing policy could be extended for few more months.

In such a policy, the government announces support measures for both goods and services exporters. Exports during April-February this fiscal dipped by 12.23% to $256 billion. Imports during the period too declined by 23.11% to $340.8 billion, leaving a trade deficit of $84.62 billion.

Federation of Indian Export Organisations Director General Ajay Sahai said that the current situation is fluid and it is good consideration to extend the FTP for few more months. "Currently the global trade situation is fluid and we would prefer that the new FTP should come when the situation stabilises. It will be a good decision to extend it further," Sahai said.

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