Trade Policy Analysis of India

Trade Policy Analysis

According to India Brand Equity Foundation, all of the export and import related activities are governed by the Foreign Trade Policy (FTP), in order to use trade expansion as an effective instrument for economic growth and employment generation. Next, the new trade policy that is announce in April 2015, India’s Prime Minister Narenda Modi said they wish to increase India’s share of global trade from 2.1 percent to 3.5 percent and double export by 2020. This policy are seek to integrate the government’s Make in India and Digital India initiatives.

According to Foreign Trade Policy 2015-2020, duty credit scrips are freely to be transferable and usable for payment of custom duty, excise duty and service tax. Duty credit scrips is a pass that allows holder to import commodities by not paying a specified amount in import duties. Next, business leaders who have excelled in international trade and have successfully to country’s foreign trade are proposed to be recognized as Status Holders and given special treatment and privileges to facilitate their trade transactions, in order to reduce their transaction costs and time.

Furthermore, in India’s Foreign Trade Policy, the Directorate General of Foreign Trade provides Online filling of various applications under Foreign Trade Policy by exporters or importers. In order to move further towards paperless processing, it has been decides to develop an online procedure to upload digitally signed documents by Chartered Accountant, Company Secretary or Cost Accountant. As a measure of ease doing business, any exporter may upload the scanned copy of Bill of Entry under his digital signature. Next, Status Holder falling in the category of Three Star, Four Star or Five Star House may upload scanned copies of documents.

Tariff

In Foreign Trade Policy, 69% of aggregate female employment is concentrated in the manufacture of food products, such as Jelly Confectionery, tomato ketchup,  cooked stuffed pasta, mudi and the like gingerbread, papad, pastries and cake.

According to India Foreign Trade Policy and India’s Export Import (EXIM) Policy, which govern the exports and imports in India, many India’s bound tariff rates on agricultural products are ranging from 100% to 300 %, which is the highest in the world. While Indian applier tariff rates are lower, averaging 32.7% on agricultural goods in 2015, they still present a significant barrier to trade in agricultural goods and processed foods, such as potatoes, apples, grapes, canned peaches, chocolate, cookies, and other prepared foods used in quick-service restaurants. India use the large gap between bound and applied tariff rates to make frequent adjustments by using the tariff policy. They make this adjustments in order to protect domestic producers, which creating uncertainty for importers and exporters.