Tuesday, June 5, 2012

Annual Supplement to FTP 2009-14


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 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.

In the wake of contraction of global demand and impending Euro zone crisis, the Indian industry and the export sector have warmly welcomed the annual supplement to the FTP 2009-14, a seven-point agenda to help the export sector, which has been facing demand contraction in the global markets, announced by Commerce & Industry Minister Anand Sharma.  

A seven-point strategy to boost exports in the annual supplement to foreign trade policy 2009-14 includes: to give a focused thrust to employment intensive industry; to encourage domestic manufacturing for inputs to export industry and reduce the dependence on imports; to promote technological upgradation of exports to retain a competitive edge in global markets; to persist with a strong market diversification strategy to hedge the risks against global uncertainty; to encourage exports from the North Eastern region; to provide incentives for manufacturing of green goods recognising the imperative of building capacities for environmental sustainability; and to endeavour to reduce transaction cost through procedural simplification and reduction of human interface.

The year ahead is full of challenges, current challenges are very disturbing. It will take time for demand to return to pre-crisis levels. It is our expectation that with these measures, we shall be able to sustain an annual export growth of 20% this fiscal, said the Commerce & Industry Minister. India's exports grew by 21% in 2011-12 to touch USD 303 billion.

Read lot more in Rubber4U – 15th June 2012 issue

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