FTP (Foreign Trade Policy) is the policy framework issued by the Government of India to guide and regulate the country’s imports and exports. It sets out the rules, procedures, and measures that businesses need to follow when carrying out international trade.
FTP aims to make foreign trade and transactions simpler for Indian businesses. It was introduced by DGFT or Directorate General of Foreign Trade which came into effect on April 1, 2023.
How It Works:
- Sets rules for imports and exports.
- Defines export procedures and requirements.
- Provides export promotion schemes.
- Guides businesses on trade compliance.
- DGFT implements the policy.
Benefits:
- Simplifies foreign trade procedures
- Supports Indian exporters
- Promotes international trade
- Improves ease of doing business
Example:
An Indian manufacturer wants to export machinery to Europe. It checks the Foreign Trade Policy to understand the applicable export rules, procedures, and available benefits.