Govt Amends FTP to Require Stakeholder Consultations

In a significant move to enhance inclusivity and transparency in trade policy formulation, the Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy (FTP) 2023. This amendment mandates consultations with relevant stakeholders, including importers, exporters, and industry experts, during the formulation or amendment of the FTP.

Key Objectives of the Amendment

Inclusive Decision-Making: The amendment aims to involve all stakeholders in the decision-making process before introducing or modifying policies and procedures affecting the importation, exportation, and transit of goods. This ensures that those impacted by trade policies have a platform to voice their opinions and contribute meaningfully.

Mechanism for Feedback: The changes provide a structured mechanism to inform stakeholders of the reasons for not accepting their views, suggestions, comments, or feedback concerning the formulation or amendment of the FTP. This transparency fosters trust and clarity between the government and trade participants.

Government’s Commitment to Ease of Doing Business

The latest amendments reflect the central government’s commitment to strengthening the ease of doing business in India. By encouraging stakeholder and expert participation through consultation in the decision-making process, the government aims to create a more conducive environment for trade and commerce.

Retention of Final Decision-Making Authority

While the government is dedicated to considering every valuable opinion and feedback from stakeholders, it acknowledges that differing opinions may arise on the same subject. In such cases, for the smooth functioning of business, the government reserves the right to make the final decision. This provision ensures that while inclusivity is promoted, decisive action can still be taken when necessary.

Implications for the Future

This amendment ushers in a new era of inclusiveness in decision-making related to trade. As the government begins to consider opinions and feedback from stakeholders on changes to the FTP through official channels, it is anticipated that this collaborative approach will lead to more effective and representative trade policies.

Summary of the news