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Exercises · Q4

Q.State any three genuine objectives of India's Foreign Trade Policy.

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✓ Free question

India's Foreign Trade Policy pursues several enduring objectives:

  1. Promoting exports — supporting export-oriented industries and simplifying export procedures so India's share of world trade grows.
  2. Diversifying the trade basket — reducing over-dependence on a narrow set of export products or a small number of trading partner countries, spreading trade risk across more products and markets.
  3. Facilitating necessary imports — ensuring smooth import of capital goods, technology and raw materials that domestic industry needs to grow, while managing the effect on the overall trade balance.
  4. Integrating with the global economy — participating in multilateral trade arrangements and easing trade procedures so Indian firms can compete globally.

Any three of these, explained in a sentence or two each, form a complete answer — the exact incentive schemes and tariff details used to pursue these objectives change with each policy revision, but the underlying objectives themselves remain stable.

✓Final answer

Three valid objectives: promoting exports, diversifying the trade basket across products and markets, and integrating India's economy with global trade arrangements.

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