JAIIB · IEIFS

Foreign Trade Policy Foreign Investment, Economic Development International economic organizations

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

What is the primary objective of India's Foreign Trade Policy (FTP)?

A

The primary objective of FTP is to promote India's exports, enhance foreign exchange earnings, and integrate the country into the global trading system while maintaining a favorable balance of trade.

Q

What is the Foreign Trade Policy (FTP) 2023 and when was it launched?

A

Export promotion policy launched on April 1, 2023, replacing FTP 2015-20.

Q

Which ministry is responsible for formulating and implementing India's Foreign Trade Policy?

A

The Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), is responsible for formulating and implementing India's Foreign Trade Policy.

Q

What is the Services Exports from India Scheme (SEIS)?

A

Scheme rewarding service exporters with Duty Credit Scrips for foreign exchange earnings.

Q

What is the Merchandise Exports from India Scheme (MEIS)?

A

MEIS was a scheme under FTP that provided duty credit scrips to exporters of specified goods to specified markets; it has since been replaced by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

Q

What is an Export Oriented Unit (EOU) in the context of India's trade policy?

A

Units exporting entire production, enjoying duty-free imports of inputs and capital goods.

Q

What does the term 'Balance of Payments' (BoP) refer to in international economics?

A

Balance of Payments is a systematic record of all economic transactions between residents of a country and the rest of the world during a given period, comprising the current account, capital account, and financial account.

Q

What is the full form of DGFT and what is its role?

A

Directorate General of Foreign Trade; administers India's foreign trade policy and licensing.

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