Q1. Every year, Foreign Trade Policy has been declared by which ministry of the Government of India?
- (a) Ministry of Home Affairs
- (b) Ministry of Information
- (c) Ministry of Commerce and Industry
- (d) Ministry of External Affairs
Answer & solution
Answer: (c) Ministry of Commerce and Industry
India's Foreign Trade Policy (FTP) is framed and announced by the Ministry of Commerce and Industry through its Directorate General of Foreign Trade (DGFT).
Revision note — Foreign Trade Policy of India
• FTP is notified under the Foreign Trade (Development and Regulation) Act, 1992.
• DGFT, headquartered in New Delhi, frames and implements the FTP; it was created in 1991 from the office of the Chief Controller of Imports and Exports.
• FTP 2023 came into force on 1 April 2023; unlike the earlier five-year policies (e.g. FTP 2015–20) it has no end date and is updated as needed.
• FTP 2023 targets exports of USD 2 trillion by 2030 and promotes rupee trade settlement.
• Export schemes under the FTP: RoDTEP (replaced MEIS from 1 January 2021), EPCG, Advance Authorisation.
• Anti-dumping investigations are run by the Directorate General of Trade Remedies (DGTR), also under the Commerce Ministry.
Do not mix these up
• Ministry of Commerce vs Ministry of External Affairs — trade policy is Commerce; diplomacy and foreign relations are External Affairs.
Also asked from this topic: the body that formulates India's Foreign Trade Policy (DGFT); the year DGFT was created (1991); the ministry that handles anti-dumping investigations (Ministry of Commerce and Industry).