New trade policy ready, Commerce Ministry completes spade work

The Commerce Ministry has completed the spadework for the new five-year Foreign Trade Policy, which will be unveiled by the incumbent government that will take over amidst difficult global trade environment."The consultation process is over and we are compiling suggestions received from business chambers, including exporters' bodies," Director General of Foreign Trade R S Gujral told PTI.  

While Gujral did not divulge the thrust of the new policy due to the Election Commission's Model Code of Conduct, industry officials said the biggest challenge for the new government would be to reverse the export trend.Exports, which contribute 17-18 per cent of India's Gross Domestic Product giving employment to 50 million people, have suffered a big blow from the global downturn.After recording an impressive growth of over 30 per cent for the April-September period of 2008-09, exports showed negative trend since October last fiscal. 

The country managed to post a mere growth of 3.4 per cent per cent last fiscal despite about 20 per cent depreciation in rupee value.The previous  FTP, unveiled in August 2004 is ending coinciding with the five-year tenure of the UPA government. Exports had, barring 2008-09, registered good growth in these five years.