India’s Foreign Trade Policy (FTP) 2009-14 is a half step undone by more omissions than commissions, say anchal gupta and niharika patra, who argue all is not lost...
This has brought down the total oil import bill of the country and at the same time, reduced overall imports more than the exports thereby bringing the trade deficit down Sounds like the opposite side of the coin is quite shiny. Even this tiny glitter is elusive. What misses the eye in this equation is that for India, nearly 40% of imports by value directly or indirectly contribute to the export sector inputs, i.e. the reduction in the import bill is not because of reduction in oil prices alone but because the oil and other inputs go into the production of export products which in essence means that the demand reduction for India’s products overseas has created an indirect reduction in India’s exports.
Nevertheless, with the unveiling of Foreign Trade Policy 2009-14, a whole new ‘spice’ has been added to this trade saga. One much awaited move has been to simplify procedures for exporters and untangle the bureaucratic cobwebs. The transaction costs have been reduced across the spectrum through reduction in application fees and EDI connectivity across ports and companies. Though, the core issue related to uncompetitiveness of the Indian exports like lack of adequate infrastructure including pathetic power scenarios coupled with high power tariffs, agonizingly high turnaround time for ships at Indian ports and unrebated state levies remain unresolved partly because the issues come under the ambit of other ministries at the state and central government level.
Yet overall, many experts hold the view that the FTP is a move in the right direction. According to Mr. Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII) “The continued thrust on procedural simplification for exports will reduce transaction costs for Indian exporters and would go a long way in enhancing the competitiveness of exporters, especially the small and medium sized ones. The proposed announcement of setting up of inter-ministerial committee to redress the complaints of exporters and the establishment of Directorate of Trade Remedy Measures is a visionary move and reflect the seriousness of India’s export-led growth as a long term strategy.”
This has brought down the total oil import bill of the country and at the same time, reduced overall imports more than the exports thereby bringing the trade deficit down Sounds like the opposite side of the coin is quite shiny. Even this tiny glitter is elusive. What misses the eye in this equation is that for India, nearly 40% of imports by value directly or indirectly contribute to the export sector inputs, i.e. the reduction in the import bill is not because of reduction in oil prices alone but because the oil and other inputs go into the production of export products which in essence means that the demand reduction for India’s products overseas has created an indirect reduction in India’s exports.
Nevertheless, with the unveiling of Foreign Trade Policy 2009-14, a whole new ‘spice’ has been added to this trade saga. One much awaited move has been to simplify procedures for exporters and untangle the bureaucratic cobwebs. The transaction costs have been reduced across the spectrum through reduction in application fees and EDI connectivity across ports and companies. Though, the core issue related to uncompetitiveness of the Indian exports like lack of adequate infrastructure including pathetic power scenarios coupled with high power tariffs, agonizingly high turnaround time for ships at Indian ports and unrebated state levies remain unresolved partly because the issues come under the ambit of other ministries at the state and central government level.
Yet overall, many experts hold the view that the FTP is a move in the right direction. According to Mr. Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII) “The continued thrust on procedural simplification for exports will reduce transaction costs for Indian exporters and would go a long way in enhancing the competitiveness of exporters, especially the small and medium sized ones. The proposed announcement of setting up of inter-ministerial committee to redress the complaints of exporters and the establishment of Directorate of Trade Remedy Measures is a visionary move and reflect the seriousness of India’s export-led growth as a long term strategy.”
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)
