Govt makes stakeholder consultation mandatory while formulating FTP

The changes also provide the mechanism to inform reasons for not accepting views, suggestions, comments or feedback concerning the formulation or amendment of the FTP

The Directorate General of Foreign Trade (DGFT) has made amendments to the Foreign Trade Policy to make consultations with stakeholders for their views on draft policies mandatory, an official statement said on Friday.

The changes also provide the mechanism to inform reasons for not accepting views, suggestions, comments or feedback concerning the formulation or amendment of the Foreign Trade Policy, the commerce ministry said.

"The DGFT on Thursday notified amendment in the Foreign Trade Policy, 2023, to include Para...to bring legal backing in the FTP to make it necessary to do consultation with stakeholders to seek views, suggestions, comments or feedback from relevant stakeholders, including importers/exporters/industry experts concerning the formulation or amendment of the FTP," it said.

The key objective of the amendments is to encourage the participation of all stakeholders in the decision-making process before introducing or changing policy and procedures affecting the importation, exportation, and transit of goods, along with a reasonable opportunity to comment and contribute to the process.

The government is committed to ensuring due consideration is being given to every valuable opinion/feedback received from stakeholders, it added.

"However, at the same time, the government has to remain cognisant of the fact that multiple stakeholders may offer different opinions on the same subject and in such cases for smooth functioning of business the government ought to reserve to itself the right to take a final call," it said.

It is only to deal with exceptional circumstances such as this, that the right to suo moto formulate policies has been reserved with the government, it added.

"The latest amendments in the Foreign Trade Policy, 2023, reflect upon the central government's commitment towards strengthening the scope of ease of doing business by encouraging stakeholder and expert participation through consultation in the decision-making process," it said.