Trade policy is a collection of rules and regulations which pertain to trade.

Every nation has some form of trade

policy in place, with public officials formulating the policy which they think would be most appropriate for their
country. The purpose of trade policy is to help a nation's international trade run more smoothly, by setting clear
standards and goals which can be understood by potential trading partners. In many regions, groups of nations work
together to create mutually beneficial trade policies.

Things like import and export taxes, tariffs, inspection regulations, and quotas can all be part of a nation's trade policy.
Some nations attempt to protect their local industries with trade policies which place a heavy burden on importers,
allowing domestic producers of goods and services to get ahead in the market with lower prices or more availability.
Others eschew trade barriers, promoting free trade, in which domestic producers are given no special treatment, and
international producers are free to bring in their products.

Safety is sometimes an issue in trade policy. Different nations have different regulations about product safety, and
when goods are imported into a country with stiff standards, representatives of that nation may demand the right to
inspect the goods, to confirm that they conform with the product safety standards which have been laid out. Security is
also an issue, with nations wanting to protect themselves from potential threats while maintaining good foreign
relations with frequent trading partners.

When nations trade with each other regularly, they often establish trade agreements. Trade agreements smooth the
way for trading, spelling out the desires of both sides to create a stronger, more effective trading relationship. Many
trade agreements are designed to accommodate a desire for free trade, with signatories to such agreements making
certain concessions to each other to establish a good trading relationship. Regular meetings may also be held to
discuss changes in the financial climate, and to make adjustments to trade policy accordingly.

Foreign Trade Policy of India

This site provides comprehensive information on Foreign Trade Policy of India . The site also
focuses on India's achievements as a result of its well designed Foreign Trade Policy.

To become a major player in world trade, a comprehensive approach needs to be taken through the
Foreign Trade Policy of India . Increment of exports is of utmost importance, India will have to
facilitate imports which, are required for the growth Indian economy. Rationality and consistency
among trade and other economic policies is important for maximizing the contribution of such
policies to development. Thus, while incorporating the new Foreign Trade Policy of India, the past
policies should also be integrated to allow developmental scope of India’s foreign trade. This is the
main mantra of the Foreign Trade Policy of India.

Objectives of the Foreign Trade Policy of India -

Trade propels economic growth and national development. The primary purpose is not
the mere earning of foreign exchange, but the stimulation of greater economic
activity. The Foreign Trade Policy of India is based on two major objectives, they are -
 To double the 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.

Strategy of Foreign Trade Policy of India -

 Removing government controls and creating an atmosphere of trust and transparency to promote
entrepreneurship, industrialization and trades.
 Simplification of commercial and legal procedures and bringing down transaction costs.
 Simplification of levies and duties on inputs used in export products.
 Facilitating development of India as a global hub for manufacturing, trading and services.
 Generating additional employment opportunities, particularly in semi-urban and rural areas, and
developing a series of ‘Initiatives’ for each of these sectors.
 Facilitating technological and infrastructural upgradation of all the sectors of the Indian economy,
especially through imports and thereby increasing value addition and productivity, while attaining
global standards of quality.
 Neutralizing inverted duty structures and ensuring that India's domestic sectors are not
disadvantaged in the
 Free Trade Agreements / Regional Trade Agreements / Preferential Trade Agreements that India
enters into in order to enhance exports.
 Upgradation of infrastructural network, both physical and virtual, related to the entire Foreign
Trade chain, to global standards.
 Revitalizing the Board of Trade by redefining its role, giving it due recognition and inducting
foreign trade experts while drafting Trade Policy.
 Involving Indian Embassies as an important member of export strategy and linking all commercial
houses at international locations through an electronic platform for real time trade intelligence,
inquiry and information dissemination.

Partnership -

Foreign Trade Policy of India foresees merchant exporters and manufacturer exporters, business
and industry as partners of Government in the achievement of its stated objectives and goals.

Road ahead of Indian foreign trade policy -

This Foreign Trade Policy of India is a stepping stone for the development of India’s foreign trade.
It contains the basic principles and points the direction in which it propose to go. A trade policy
cannot be fully comprehensive in all its details it would naturally require modification from time to
time with changing dynamics of international trade.