Foreign Trade Current Affairs - 2020
On April 1, 2020, the Government of India notified that the export schemes such as Export Promotion Capital Goods and Duty-Free Import authorization are to be extended by one year. Also, GoI has planned to extend Foreign Trade Policy 2015-20 by another one year till 2021.
Objective of the policy
The policy aims at making India a bigger player in Global level. It targets to bring in overseas sales of 900 billion USD by 2020. This is to be achieved with Digital India Programme and Make in India programme.
The policy also aimed to diversify export baskets of the country. It also aimed to provide regular appraisal mechanism to reduce trade imbalances. The policy launched five different schemes. They include Focus Product Scheme, Focus Market Scheme, Market-linked Focus Product Scheme and Agriculture infrastructure incentive scrip. Also, Gram Udyog Yojana and Vishesh Krishi were merged with single merchandise exports, the MEIS scheme.
Between April 2019 and February 2020, the imports of India were 436 billion USD and exports were 292 billion USD.
Tags: Digital India • Export promotion • Foreign Trade • Foreign Trade Policy • Make in India
Recently, the United States of America removed the “developing” tag for dozens of countries. India is one amongst them. These countries are to be classified as developed economies
The “Developing” status for a country in the US is associated with US Trade Act, 1974. The act authorized General System of Preferences (GSP). The intention of the system is to help the poor countries develop faster. The act was later adopted by the World Trade Organization (WTO) and was extended to other rich countries as well. In WTO, around two-thirds of the countries classify themselves as developing.
Recently US had withdrawn India from its GSP listings. Under this preference there were more than 2,000 items that were of worth 6.3 billion USD. This affects India harshly. Hence, India has been asking the US to re-include the GSP status. Unfortunately, US has permanently put an end to India’s GSP status by removing it from the list of developing.
Tags: developing countries • Economic Growth • Foreign Trade • GSP • GSP Benefits