5-1 National Foreign Trade Policy

5-2 Study Topics  Evolution.  Uniqueness.  Past and the Present.  Achievements.  The power and Limitations.  Direction

5-3 Ministry of Commerce and Industries Executing Department DGFT Policy Making Ministry

5-4 Policy Objective To stop and reverse delaying trends of To stop and reverse delaying trends of exports and provide support to sectors hit exports and provide support to sectors hit by recession. by recession.

5-5 Hit Areas Specially In India  Evolution.  Uniqueness.  Past and the Present.  Achievements.  The power and Limitations.  Direction

5-6 Global Trade This Year  World Bank Estimate 53 M fall below poverty line.  1 Billion people would go hungry.  Decline in traditional exports market.  Countries have resorted to protectionist measures- Barriers to trade.  We don’t know the recovery ‘U’ Shape or ‘V’ Shape or ‘L’ Shape... Declining by 9% IMF Declining by 15% WTO

5-7 Pre Policy Announcement by Ministry of Finance Series of measures CRR: Reduces to 5% SLR : 24% Reverse Ratio Rates and the Repo Rates slashed. SIDBI,NHB,EXIM Bank extra amount infused.. Result:- July Industrial Production at 7% and core sectors upwards

5-8 Go Back to Previous Policy 2004: Two Objective A) To double our percentage share of Global merchandize in 5 years. B) Trade expansion through economic grwoth and employment. Result: : US $ 168billions Global Market Share: % in to 1.45% in

5-9 Results continued…. Commercial services to 2.8%. Employment to 14 Millions as a result of exports in five years.

5-10 Other Directions Other Directions SEZ Act : Encouraging result. Approvals : 577 zones. 350 notified. People employed : 3,00, zones. Physical exports from Rs. 66,000 crores in to Rs crores in % growth in a year. SEZ exports in the 5 years have grown : 620 FDI flow to zones US $ 2.43 billion.

5-11 Current policy target Current policy target To achieve 15% over Target Us $ 200 billion by march In three years, high growth of 25%. By 2014,double the exports of goods and services. Long term policy objectives to double in global trade by 2020.

5-12 Policy environment Diversification Three pillars of the policy Fiscal incentives Market access They support to achieve those objectives

5-13 Supports Improvement in export infrastructure. Lowering transaction cost. Full refund of all indirect taxes and levies. All are determined to build confidence during the period of stress.

5-14 Special thrust Employment- oriented sectors. Textiles. Leather. Handicraft. Handlooms Gem and jewellery. Knitwear. Timely availability of dollar Credit committee is constituted.

5-15 Incentives Continuation of DEPB scheme till Income tax benefits U/S 10(A) for IT industry and U/S 10(B) for 100% EOU till Enhanced insurance cover under ECGC scheme till march Value addition, minimum 15% on imported inputs under advanced authorization scheme.

5-16 Market and promotion aspects Expand to emerging markets- - Africa,lac,oceania and cis Offset inherent disadvantages - -credit risks and high trade costs Encourage production and zero duty epcg Promotion of products from north –east region Additional/Resource allocation of MDA and MAI

5-17 Comprehensive economic partnership agreement with south korea The trades in goods agreement with asean from july it’s a part of look easy policy Mercosur preferential trade agreement has been concluded Commited to sucessful conclusion of doha round

5-18 Brand india drive Respond to the aspiration of millions of people of G17 Brand India shows organised across the world Favour of rule based.fair and equitable global regime

5-19 Policy on competitiveness Technology upgradation and reduction of costs Promoting import of capital goods-EPCG Export performance and status holders Upgradation of export sector infrastructure Towns of export excellence and additional focussed support

5-20 Specially for MSME Rights through trade remedy instruments under WTO Directorate of trade remedy measures India inter diamond trading hub –clusters Special infrastructure – additional ports, EDI,single window,greater transparency etc

5-21 THANKS & QUERIES