Benefits of Foreign Trade
Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity.
For India to become a major player in world trade, an all encompassing, comprehensive view needs to be taken for the overall development of the country 's foreign trade.
While increase in exports is of vital importance, we have also to facilitate those imports which are required to stimulate our economy. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. Thus, while incorporating the existing practice of enunciating an annual Foreign Trade Policy, it is necessary to go much beyond and take an integrated approach to the developmental requirements of India 's foreign trade.
[pic][pic][pic][pic]The Foreign Trade Policy is built around two major objectives. These are:
• To double our percentage share of global merchandise trade within the next five years; and
• To act as an effective instrument of economic growth by giving a thrust to employment generation.
STRATEGY
For achieving these objectives, the following strategies need to be adopted:
• Removing government controls and creating an atmosphere of trust and transparency to promote entrepreneurship, industrialization and trades.
• Simplification of commercial and legal procedures and bringing down transaction costs.
• Simplification of levies and duties on inputs used in export products.
• Facilitating development of India as a global hub for manufacturing, trading and services.
• Generating additional employment opportunities, particularly in semi-urban and rural areas, and developing a series of ‘Initiatives’ for each of these sectors.
• Facilitating technological and infrastructural upgradation of all the sectors of the Indian economy, especially through imports and thereby increasing value
For India to become a major player in world trade, an all encompassing, comprehensive view needs to be taken for the overall development of the country 's foreign trade.
While increase in exports is of vital importance, we have also to facilitate those imports which are required to stimulate our economy. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. Thus, while incorporating the existing practice of enunciating an annual Foreign Trade Policy, it is necessary to go much beyond and take an integrated approach to the developmental requirements of India 's foreign trade.
[pic][pic][pic][pic]The Foreign Trade Policy is built around two major objectives. These are:
• To double our percentage share of global merchandise trade within the next five years; and
• To act as an effective instrument of economic growth by giving a thrust to employment generation.
STRATEGY
For achieving these objectives, the following strategies need to be adopted:
• Removing government controls and creating an atmosphere of trust and transparency to promote entrepreneurship, industrialization and trades.
• Simplification of commercial and legal procedures and bringing down transaction costs.
• Simplification of levies and duties on inputs used in export products.
• Facilitating development of India as a global hub for manufacturing, trading and services.
• Generating additional employment opportunities, particularly in semi-urban and rural areas, and developing a series of ‘Initiatives’ for each of these sectors.
• Facilitating technological and infrastructural upgradation of all the sectors of the Indian economy, especially through imports and thereby increasing value