Foreign Trade Policy 2005
1. Inter State Trade Council
In order to achieve our Foreign Trade Policy objective of becoming a major player in world trade, a comprehensive view needs to be taken for the overall development of the countries foreign trade. Coherence and consistency among trade and other economic policies of both the Union and the State Governments is important for maximizing the contribution of such policies to development. State Governments are increasingly required to partner with the Union Government in the process.
Some States have formulated export policies recognizing the need to focus on the removal of impediments in promoting trade, employment and economic activity. But a lot needs to be done to coordinate this.
It is therefore proposed to engage the State Governments in providing an enabling environment for boosting international trade, by setting up an Inter State Trade Council. It is hoped that the Council would provide an appropriate institutionalized dialogue mechanism on the subject.
2. Removal of Export Cess
The Department of Commerce has taken a consistent stand from a policy perspective that taxes and duties should not be exported. The cess levied under the different Commodity Board Acts is a tax on exports, which is a handicap and a major irritant to our exporters and erodes the competitiveness of Indian agriculture exports. Department of Commerce proposes to abolish cess on export of all agricultural and plantation commodities levied under various Commodity Board Acts.