India has decided to extend its current Foreign Trade Policy (FTP) 2015-20 by six months in light of current economic turmoil. This happened after receiving feedback against disclosing any long-term strategy amid a volatile global situation, supply chain outages, currency depreciation, and shrinking export orders.
The current FTP, which was extended in April, was set to expire on September 30. Due to the pandemic and the lockdown imposed to stop its spread, the policy was initially extended for a year on March 31, 2020.
“Many countries have restricted imports of luxury goods and non-essential items, many of them are insisting on paying in local currency, which is risky because depreciation of these currencies against the US dollar. Hence, the trade strategy needed to be reworked to reflect the current global reality,”
According to the commerce ministry statement, the decision to maintain the present Foreign Trade Policy (2015-20) was made in response to petitions from export promotion councils and prominent exporters.
“We will have to defer the release of the new policy. The existing policy will be continued,”
stated Amit Yadav, assistant secretary of the Department of Commerce.