Foreign Trade Policy 2005
Annual Supplement 2005 to The Foreign Trade Policy 2004-09
fast changing international trading scenario, outsourcing of manufacturing
activities in the skill intensive sectors has become an essential business
strategy for the developed countries.
FTP strategy is on the right track
the five year Foreign Trade
Policy was announced on
first objective was doubling our percentage share of global merchandise trade
within five years. To achieve this, an average annual growth rate of about 16%
was envisaged. The DGCI&S trade statistics show that the actual growth of
the merchandise trade in the very first year of the policy period has been of
the order of 24%, which has far surpassed the target we set for ourselves. This
growth has been unprecedented in
FTP as a generator of employment
The second objective of the FTP was providing thrust to employment generation particularly in semi-urban and rural areas. The FTP announced special focus initiatives in the employment intensive areas of agriculture, handicrafts, handlooms, gems & jewellery and leather & footwear sectors. The employment generation has been encouraging not only in these sectors, but in other sectors across the board. A study commissioned by the Ministry reveals that exports generated an incremental direct employment of 10 lakh jobs in the year 2004-05, over the previous year. The total employment generated during the year corresponding to export activity valued at 78 billion was 1 crore jobs – 86 lakhs of direct employment, and 14 lakhs of indirect employment in the logistics, transport and related sectors. The study further reveals that if we achieve our target of 150 dollars over the next four years, we shall be adding a further 1 crore jobs: 85% of it direct employment, and 15% indirectly associated jobs.
A policy of partnership
The FTP provided a road map that could help Indian companies become globally competitive and simultaneously aimed at giving Indian consumers world class products and services. Specific sectoral initiatives have helped in creating more jobs, higher exports and an enhanced level of confidence for Indian products and services in the global economy.
I believe that it is the new equation of partnership and co-operation engendered by the FTP last year that has paid the rich dividends we are now encountering. Business and industry have responded remarkably.
Government is committed to resolving all outstanding problems and disputes pertaining to the past policy periods through the Grievance Redressal Committee set up last year, for condoning delays, regularizing breaches by exporters in bonafide cases, resolving disputes over entitlements, granting extensions for utilization of licenses etc. The atmosphere of partnership between Government and Business will be enhanced and taken forward.
Changing international trade dynamics
dynamics of global trade and the opportunities provided by the multilateral
trading platform necessitate a continuous realignment of our international trade
strategies and priorities. While
The specific initiatives undertaken in this Annual Supplement to the Foreign Trade Policy, 2004-09 are given in this compendium.