Government extend foreign trade policy till September 30

Government extend foreign trade policy

What is the news :

• The government has further extended the existing Foreign Trade Policy(FTP) till

September 30 this year, according to a commerce ministry notification.

• FTP provides guidelines for enhancing exportsto push economic growth and create jobs.
• On March 31, 2020, the government had extended the Foreign Trade Policy 2015-20 for one year till March 31, 2021, amid the coronavirus outbreak and the lockdown.

About the policy :

• In the policy, the government announces support measures for both goodsand services
• The existing Foreign Trade Policy 2015-20 which is valid up to March 31, 2022 is extended up to September 30, 2022
• The merchandise exports rose by by 37 per cent to USD 400.8 billion in 2021-22 until March 21 against USD 292 billion in 2020-21. Imports during the period stood at USD 589 billion, leaving a trade deficit of about USD 189 billion.
• Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said that it was a good consideration to extend the FTP for few more months.
• In a separate notification, the DGFT said import of urea on government account is allowed through Indian Potash Ltd till March 31, 2023.

Objective of foreign trade policy :

• To boost the economy and grow the EXIM process in India.
• To improve the balance of payment and trade. To enhance the trading activities and generate a workforce environment. To provide consumers with goods and services of utmost quality and with effective cost.

About EXIM bank :

• Exim Bank(India), a finance institution in India, established in 1982 under Export-Import Bank of India Act 1981.
• EXIM Bank is a wholly-owned subsidiary of the Indian Government.
• FOUNDED – 1982
• Headquarters – Mumbai
• Chairperson – Harsha Bangari (M.D.)

Recent related news :

Centre extends validity of FCRA registration certificates till June.

• The Centre has decided to extend the validity of Foreign Contribution (Regulation) Act, FCRA registration certificates of certain categories of FCRA registered entities.
• The validity of registration certificates of such entities whose validity was extended till 31st March 31st of this month and whose renewal application is pending will stand extended till this year or till the date of disposal of the renewal application, whichever is earlier.
• According to ministry, validity of FCRA entities whose 5 years validity period is expiring during 1st April 2022 to 30th June 2022 and who have applied for renewal before expiry of 5 years validity period will stand extended up to 30th June 2022 or till date of disposal of renewal application, whichever earlier.
• The order also mentioned that all FCRA registered associations are therefore advised to take note that in case of refusal of the application for renewal of certificate of registration, the validity of the certificate shall be deemed to have expired on the date of refusal of the application of renewal and the association shall not be eligible either to receive the foreign contribution or utilise the foreign contribution ‘ received.
• This issues with the approval of the Competent Authority. All concerned may take note of the decision and take appropriate action in the matter.

About FCRA act :

• The Foreign Contribution (regulation) Act, 2010is an act of the Parliament of India, by the 42nd Act of 2010.
• It is a consolidating act whose scope is to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.
• It is designed to correct shortfalls in the predecessor act of 1976. The bill received presidential assent on 26 September 2010.

What is the prime objective of Act :

• Prime objective of regulating the acceptance and utilization of foreign contribution and foreign hospitality by personsand associations working in the important areas of national life.