Foreign Trade Policy 2004-09

Annual Supplement 2008

There is a widespread, but not entirely accurate, perception within the Indian elite that the nation's foreign policy began with its independence in 1947. The ideas that Jawaharlal Nehru powerfully espoused and vigorously applied for newly independent India's engagement with the world have left an enduring framework of reference for the political class.

India 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, the country must also facilitate those imports which are required to stimulate the Indian economy.

Keeping this in mind the Foreign Trade Policy 2004-09 was announced by Honourable Minister for Commerce & Industry Mr. Kamal Nath on 31ST AUGUST, 2004 with a target of the following:

» To double India's percentage share of global merchandise trade within the next five years.

» To act as an effective instrument of economic growth by giving a thrust to employment generation.

In one year we achieved the following:
» Against a target of 74 billion dollars worth of exports we have managed to reach almost 80 billion dollars.

» 24% growth rate corresponded to the target of 16%.

» A growth of 34% in imports.

» Exports generated an incremental direct employment of 10 lakh jobs in the year 2004-05.

Creating history with the success story, Annual Supplement 2005-06 of the Foreign Trade Policy 2004-09 was spoken of on 8th April’ 2005 to put the following in target:
» Measures to enhance competitiveness of indias manufacturing sector and employment generation.

» Big thrust on agri exports -- removal of export cess on agri and plantation commodities proposed.

» Additional epcg benefits for agriculture and ssis epcg for retail sector operationalised.

» New initiatives on infrastructure to reduce congestion at major ports epcg extended to minor ports, icds & cfs.

» Big leap towards procedural simplification and cutting transaction costs aayaat niryat single common application form introduced.

» Imports under served from india scheme to allow bulk sourcing.

» Marine sector gets special attention in the wake of tsunami.

» Depb to continue replacement scheme under finalisation.

» Setting up of inter-state trade council proposed.

» 88 billions dollar in exports.

Quoting the concluding lines of the minister
Government is committed to resolving all outstanding problems and disputes pertaining to the past policy periods through the Grievance Redressal Committee set up last year, for condoning delays, regularizing breaches by exporters in bonafide cases, resolving disputes over entitlements, granting extensions for utilization of licences etc. The atmosphere of partnership between Government and Business will be enhanced and taken forward.

Thank you.