{"id":1504,"date":"2021-01-20T07:21:56","date_gmt":"2021-01-20T07:21:56","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1504"},"modified":"2021-01-20T07:28:31","modified_gmt":"2021-01-20T07:28:31","slug":"new-foreign-trade-policy-2021-to-2026","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/","title":{"rendered":"New Foreign Trade Policy 2021 to 2026: A Detailed Analysis"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the Union Ministry of Commerce\nand Industry (MoCI) has announced the New Foreign Trade Policy 2021 to 2026.\nThe same will come into effect from 01.04.2021 and will remain effective for a\nperiod of 5 years.<\/p>\n\n\n\n<p>Further, the said policy was an outcome of the Meeting held by the Parliamentary Consultative Committee on 12.01.2021, which was chaired Mr Hardeep Singh Puri and was attended by various Senior Officer of the Ministry and Members of the Parliament. <\/p>\n\n\n\n<p>In this blog, we will discuss the\nconcept of New Foreign Trade Policy 2021 to 2026, together with the salient\nfeatures of Foreign Trade Policy 2015 to 2020.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3acc4649028\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3acc4649028\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Concept_of_Foreign_Trade_Policy_2014-2020\" title=\"Concept of Foreign Trade Policy\n2014-2020\">Concept of Foreign Trade Policy\n2014-2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Objectives_of_Foreign_Trade_Policy_2014-2020\" title=\"Objectives of\nForeign Trade Policy 2014-2020\">Objectives of\nForeign Trade Policy 2014-2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Features_of_Foreign_Trade_Policy_2014-2020\" title=\"Features of Foreign Trade Policy\n2014-2020\">Features of Foreign Trade Policy\n2014-2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Concept_of_New_Foreign_Trade_Policy_2021_to_2026\" title=\"Concept of New Foreign Trade Policy\n2021 to 2026\">Concept of New Foreign Trade Policy\n2021 to 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Objectives_of_New_Foreign_Trade_Policy_2021_to_2026\" title=\"Objectives of New Foreign Trade\nPolicy 2021 to 2026\">Objectives of New Foreign Trade\nPolicy 2021 to 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Make_India_an_US_5_Trillion_Economy\" title=\"Make India an US $5 Trillion\nEconomy\">Make India an US $5 Trillion\nEconomy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Implementation_of_District_Export_Hubs\" title=\"Implementation of District Export\nHubs\">Implementation of District Export\nHubs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Correcting_Imbalances_within_India\" title=\"Correcting Imbalances within India\">Correcting Imbalances within India<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/new-foreign-trade-policy-2021-to-2026\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Foreign_Trade_Policy_2014-2020\"><\/span>Concept of Foreign Trade Policy\n2014-2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Foreign Trade Policy 2015-2020 was launched\non 01.04.2015. It aimed to provide a framework for increasing the level of\nemployment and exports in India. The same was made in consonance with various\ngovernment initiatives, such as follows:<\/p>\n\n\n\n<ol><li>Make\nIn India;<\/li><li>Digital\nIndia;<\/li><li>Skill\nIndia;<\/li><li>Startup\nIndia;<\/li><li>Ease\nof Doing Business;<\/li><\/ol>\n\n\n\n<p>Further, it shall be relevant to note\nthat in March 2020, the government decided to increase the validity of Foreign\nTrade Policy 2014-2020 by one year. That means the same will remain in\nexistence till 31.03.2021. Also, the same was done in the view of COVID 19\npandemic, to provide relief under various export promotion schemes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_of_Foreign_Trade_Policy_2014-2020\"><\/span>Objectives of\nForeign Trade Policy 2014-2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main objective of the Foreign Trade\nPolicy 2014 \u2013 2020 was to double the oversea sales to the US $900 billion by\nthe Financial Year 2019 \u2013 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_of_Foreign_Trade_Policy_2014-2020\"><\/span>Features of Foreign Trade Policy\n2014-2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The salient features of the Foreign\nTrade Policy 2014-2020 can be summarised as:<\/p>\n\n\n\n<ol><li>Notified Scheme like MIES (Merchandise Export from India Scheme) and SEIS (Service Export from India Scheme);<\/li><li>These two schemes replaced various earlier implemented schemes, which were on different conditions, eligibility, and usage;<\/li><li>Changed the Nomenclature of the Export Houses to 1, 2, 3, 4, 5 Stars Export House;<\/li><li>Aligned the provisions of the Foreign Trade Policy or FTP with government initiatives;<\/li><li>The feature of Duty Credit Scrip is freely transferable and is made for the payment of Service Tax or Custom Duty;<\/li><li>State Government worked to fulfil the mission of Export Promotion;<\/li><li>MIES supported the Agricultural and Village Industry Products at the global level;<\/li><li>To have regular communication with the Stakeholder, the two institutional mechanisms that have been established are as follows:<\/li><li>BOT (Board of Trade);<\/li><li>CTD (Council for Trade Development);<\/li><li>BOT or Board of Trade was implemented to play the Advisory Role in the economy;<\/li><li>CTD or Council for Trade Development worked in regard to representations made by States and Union Territories;<\/li><li>Established CRIT (Centre for Research in International Trade) for the objectives as follows:<\/li><li>To Strengthen the Indian Research Possibilities in International Trade; and <\/li><li>To Enable all the Developing Countries to express their outlooks and concerns from a position of strength;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_New_Foreign_Trade_Policy_2021_to_2026\"><\/span>Concept of New Foreign Trade Policy\n2021 to 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The New Foreign Trade Policy 2021 to\n2026 was passed in the Meeting held by the Parliamentary Consultative Committee\non 12.01.2021, which was chaired Mr Hardeep Singh Puri and was attended by\nvarious Senior Officer of the Ministry and Members of the Parliament.<\/p>\n\n\n\n<p>However, it shall be taken into due\nconsideration that the said policy is formed after the events as follows:<\/p>\n\n\n\n<ol><li>A BOT (<strong>Board of Trade<sup><a class=\"text-primary\" href=\"https:\/\/www.dgft.gov.in\/CP\/?opt=boardoftrade\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong>) Meeting was held in the month of December 2020 to record the inputs and opinions of both the state government and stakeholders;<\/li><li>Meetings with Chambers of Commerce, Industry Associations, EPC (Export Promotion Councils) were held to record their inputs and opinions;<\/li><li>A Trade Notice was issued to invite suggestions from the various stakeholders concerning the Foreign Policy;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_of_New_Foreign_Trade_Policy_2021_to_2026\"><\/span>Objectives of New Foreign Trade\nPolicy 2021 to 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key objectives of the New Foreign Trade Policy 2021 to 2026 are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/18802147-Converted-Swarit.png\" alt=\"New Foreign Trade Policy Objectives\" class=\"wp-image-1511\" width=\"528\" height=\"373\"\/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Make_India_an_US_5_Trillion_Economy\"><\/span>Make India an US $5 Trillion\nEconomy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The New Foreign Trade Policy 2021 to\n2026 aims to boost the exports of the service and merchandise sectors, as a\nresult to make India an US $5 trillion economy. <\/p>\n\n\n\n<p>Further, the same can be achieved by ways\nprovided as follows:<\/p>\n\n\n\n<ol><li>By\nAddressing several Domestic and Overseas Constraints concerning policy and\nregulatory framework;<\/li><li>By\nLowering the Transaction Cost;<\/li><li>By\nEnhancing the Ease of Doing Business;<\/li><li>By\nCreating a Low cost Environment with the help of Logical Infrastructure and\nEfficient Utility;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implementation_of_District_Export_Hubs\"><\/span>Implementation of District Export\nHubs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another significant feature of the New\nForeign Trade Policy 2021 to 2026 is that it aims to make every Indian district\na potential Export Hub.<\/p>\n\n\n\n<p>For achieving the said objective, the\nMinistry of Commerce by way of the Regional Authorities of DGFT (Director\nGeneral of Foreign Trade) will engage with both State Governments and Union\nTerritories to implement the policy in a Phased Manner.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Correcting_Imbalances_within_India\"><\/span>Correcting Imbalances within India<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Last but not the least key objective of\nthe New Foreign Trade Policy 2021 to 2026 is to correct the imbalances within\nIndia by improving the operations of the Manufacturing and Domestic Services\nSector, together with the infrastructure support given by the government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the main reason behind\nthe implementation of New Foreign Trade Policy 2021 to 2026 is to make India an\nUS $5 Trillion Economy and for which the government aspires to enforce the\npolicy of District Hubs and various other initiatives as mentioned above. <\/p>\n\n\n\n<p>Further, in case of any other doubt or dilemma, reach out to <a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/\"><strong>Swarit Advisors<\/strong><\/a>, our experienced FEMA experts are there to cater to all your doubts and queries.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/companies-compromises-arrangements-amalgamation-second-amendment-rules-2020\/\">Companies (Compromises, Arrangements &#038; Amalgamation) Second Amendment Rules 2020<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Union Ministry of Commerce and Industry (MoCI) has announced the New Foreign Trade Policy 2021 to 2026. The same will come into effect from 01.04.2021 and will remain effective for a period of 5 years. Further, the said policy was an outcome of the Meeting held by the Parliamentary Consultative Committee on 12.01.2021, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1505,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50],"tags":[196],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1504"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1504"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1504\/revisions"}],"predecessor-version":[{"id":1520,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1504\/revisions\/1520"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1505"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}