Govt extends tenure of foreign trade policy till Aug

To lend stability to trade policy, the government has decided to continue the provisions of the current foreign trade policy which was to expire on March 31. Hence, the incentives given under the policy will continue.

“The existing Foreign Trade Policy 2009-14 was to remain in force until March 31, 2014. To provide continuity in policy environment, this is being extended beyond March 31, 2014,” a Directorate General of Foreign Trade notification said.

The foreign trade policy (2009-14) was announced on 27th August, 2009 in the backdrop of a fall in India’s exports due to global slowdown. The immediate and the short term objective of the policy was to arrest and reverse the declining trend of exports as well as to provide additional support especially to those sectors which were hit badly by recession in the developed world.

Even though the commerce and industry ministry has begun consultations with stakeholders on the new foreign trade policy, the work is moving slowly as there may be a regime change after the General Elections in May.

Commerce Secretary Rajeev Kher recently confirmed that the commerce ministry was in the process of formulating a new policy but it would take a few months to complete the process.