{"id":208655,"date":"2022-09-29T20:05:38","date_gmt":"2022-09-29T14:35:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=208655"},"modified":"2022-09-29T20:05:38","modified_gmt":"2022-09-29T14:35:38","slug":"foreign-trade-going-beyond-a-phrase","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/foreign-trade-going-beyond-a-phrase\/","title":{"rendered":"Foreign trade: Going beyond a phrase"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cForeign trade: Going beyond a phrase\u201d <\/strong>published in the Business Standard <\/b>on\u00a029th\u00a0<\/sup>September 2022<\/strong>.<\/p>\n

Syllabus<\/strong>: GS 3 – Changes in industrial policy and their effects on industrial growth.<\/span><\/p>\n

Relevance<\/strong>: About India\u2019s foreign trade policy.<\/p>\n

News<\/strong>: Recently, India\u2019s foreign trade policy, 2015 was extended by six months at a time since 2020.<\/p>\n

What are the reasons behind extending the foreign trade policy?<\/h5>\n\n\n\n
Read here: Foreign Trade Policy extended for six months<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What is the need for a new Foreign Trade Policy?<\/span><\/h5>\n\n\n\n
Must read: The Need for a New Foreign Trade Policy \u2013 Explained, pointwise<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What is the evolution of trade in India since FTP 2015-2030?<\/h5>\n

In 2015, the government was doubtful about the benefits of freer trade. So, new agreements were put on hold, older agreements were scrutinised, and bilateral investment treaties were scrapped.<\/p>\n

After the Covid-19 pandemic hit India, the prime minister introduced the concept of aatmanirbharta, or self-reliance. It is not clear what self-reliance specifically means in the context of foreign trade policy. It is assumed that increasing the capacity and competitiveness of domestic industry.<\/p>\n

Meanwhile, the government has also acted on multiple new free trade agreements,. For instance, a)<\/strong> Signing a comprehensive partnership with the United Arab Emirates, b)<\/strong> A more limited agreement with Australia, and c)<\/strong> Moving discussions forward with the United Kingdom and the European Union among others.<\/p>\n\n\n\n
Read more: Policy balance: Higher trade and fiscal deficits can create risks<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What clarifications are required in a new foreign trade policy?<\/h5>\n

The new foreign trade policy should ideally fill a)<\/strong> \u201cSelf-reliance\u201d is one short phrase and does not constitute a policy statement on its own, b)<\/strong> Clarify whether Production-linked incentive (PLI) schemes are a temporary bridging mechanism or an export promotion system or an investment promotion scheme or a geo-strategic play to reduce dependence on China. This can be done by clearly defining aim and purpose of the scheme, c)<\/strong> There has to be clear proof of how temporary subsidies lead to a permanent increase in competitiveness.<\/p>\n

In the absence of this understanding, the errors of the past will be repeated. These issues need to be clearly examined and understood before releasing a new policy.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cForeign trade: Going beyond a phrase\u201d published in the Business Standard on\u00a029th\u00a0September 2022. Syllabus: GS 3 – Changes in industrial policy and their effects on industrial growth. Relevance: About India\u2019s foreign trade policy. News: Recently, India\u2019s foreign trade policy, 2015 was extended by six months at a time… Continue reading Foreign trade: Going beyond a phrase<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-208655","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704809332},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/208655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=208655"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/208655\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=208655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=208655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=208655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}