Foreign Trade Policy in Agriculture and CommerceForeign Trade Policy in Agriculture and Commerce

Understanding the statutory backing, governing bodies, and administrative apparatus of India's foreign trade.

• Foreign Trade (Development and Regulation) Act, 1993: This legislation empowers the Central Government to formulate and announce the Export-Import Policy and regulate foreign trade through licensing and prohibitions.
• Directorate General of Foreign Trade (DGFT): An attached office of the Ministry of Commerce and Industry responsible for implementing the Foreign Trade Policy and facilitating export-import activities in India.
• Importer-Exporter Code (IEC): A 10-digit unique identification number issued by the DGFT, which is mandatory for any legal entity or individual to undertake import or export business in India.
• Export Promotion Councils (EPCs): Non-profit organizations registered under the Companies Act, tasked with promoting and developing India's exports across various sectors like APEDA for agriculture.

Focuses on boosting India's agricultural exports, institutional mechanisms, and regional hubs.

• Comprehensive Agriculture Export Policy (2018): Aimed at doubling agricultural exports to USD 60+ billion by 2022 and integrating Indian farmers with global value chains through cluster-based development.
• APEDA (Agricultural and Processed Food Products Export Development Authority): Established under an Act of Parliament in 1985, it functions under the Ministry of Commerce and Industry to promote scheduled agricultural and processed food products.
• Agri Export Zones (AEZs): Specific geographic regions identified to promote agricultural exports from the country through a cluster approach (e.g., Mangoes in western UP, Potatoes in Agra/Farrukhabad).
• Transport and Marketing Assistance (TMA): A scheme designed to provide assistance for the international component of freight and marketing of agricultural produce to mitigate disadvantage of higher transport costs.

Examining duty-free enclaves and export-oriented units designed to attract FDI and boost manufacturing.

• SEZ Act, 2005: Passed by Parliament, the Act came into effect in 2006 to provide a hassle-free environment for exports, backed by fiscal incentives and simplified procedures.
• District as Export Hubs Initiative: An initiative identifying products and services in all 75 districts of Uttar Pradesh and across India to promote exports directly from grassroots levels.
• Export Oriented Units (EOUs): Schemes offering favorable conditions to units undertaking to export their entire production of goods and services, with permissions for domestic tariff area sales.
• Deemed Exports: Refers to those transactions in which the goods supplied do not leave India, and payment is made in Indian rupees or foreign exchange, yet supplies qualify for export benefits.

Core macroeconomic indicators reflecting a nation's trade balance, current account, and capital account.

• Current Account Deficit (CAD): Occurs when the total value of imported goods, services, and transfers exceeds the total value of exported goods, services, and transfers over a period.
• Capital Account: Records all international capital financial transactions, including Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), and external commercial borrowings.
• FEMA, 1999: Foreign Exchange Management Act replaced FERA, shifting the objective from conservation to facilitation of external trade and payments and orderly foreign exchange markets.
• Exchange Rate Regime: India follows a 'Managed Floating' exchange rate system where the RBI intervenes in the foreign exchange market to curb excessive volatility without fixing a specific parity.