FTP for EoDB

Foreign Trade Policy (FTP) 2023 is a dynamic and open-ended Policy that will accommodate the emerging needs proven once again...

The Directorate General of Foreign Trade (DGFT) notified the addition of Para 1.07A and 1.07B under chapter 1 of the FTP mandating consultations with stakeholders, before introducing or amending trade policies.

The government seeks to create a more inclusive decision-making process by their latest amendment in FTP. The amendment reflects upon the Central Government’s commitment for process re-engineering and automation towards strengthening the scope of Ease of Doing Business (EoDB) in India by encouraging stakeholder and expert participation through consultation in the decision-making process.

It shall henceforth provide legal backing in the FTP to make it necessary to do consultation with stakeholders including importers / exporters / industry experts concerning the formulation or amendment of the FTP in future from now on by providing a 30-day timeframe for stakeholders' submissions. It also provides mechanisms to inform reasons for not accepting the views, suggestions, comments or feedback concerning the formulation or amendment of the FTP.

It encourages participation from diverse stakeholders, an environment to build trust and encourage more active participation from stakeholders for shaping India's trade framework. The government acknowledges that differing opinions may arise and aims to handle these constructively by recognising the complexity of balancing conflicting opinions from multiple stakeholders reserving the right to take final decisions in exceptional circumstances, that -

1. has the potential to or will adversely affect trade relations with any foreign country;
2. would adversely affect food, economic or national security of India;
3. is in conflict with any government policies, strategic programs, international obligations or commitments or long-term plans and would undermine the objectives of such policies or programs;
4. addresses matters unrelated to trade or serve narrow, private or special interests to the detriment of or contrary to the broader public interest, good; or
5. would require the disclosure of confidential or classified information.

The government retains the discretion to act independently, bypassing consultations if deemed necessary.

Despite the consultative framework, the government underscores its authority to unilaterally introduce or amend provisions in the Foreign Trade Policy as required to ensure national and economic security, maintaining a balance between transparency and strategic autonomy. This move aligns with the government’s vision of fostering a robust trade environment, driven by collaboration and transparency alongside safeguarding national interests.

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