Directorate General of Foreign Trade
Directorate General of Foreign Trade (DGFT) is the governing body for the promotion and facilitation of exports and imports under the Ministry of Commerce and Industry. DGFT is responsible for implementing the Foreign Trade Policy with the primary objective of promoting Indian exports.
Directorate General of Foreign Trade is a government organization in India responsible for the formulation of exim guidelines and principles for Indian importers and Indian exporters of the country. Before 1991, DGFT was known as the Chief Controller of Imports & Exports (CCI&E).
Directorate General of the Foreign Trade internship program
The Directorate General of Foreign Trade internship program is continuing since long. The Directorate General of Foreign Trade internship program in this directorate is designed to allow officers in the directorate to interact with young scholars and researchers from prestigious academic institutions who are pursuing studies/research in Public Policy/ Economics/ Law/ Finance/ Management. While new academic ideas will allow the Directorate to critically analyze its activities and take objective and impartial corrective action. The internship will provide interns with an excellent opportunity for career advancement and professional expertise.
Foreign Trade Meaning
Foreign trade refers to the exchange of various specialized commodities and services between corresponding countries. Types of Foreign Trade:
- Import: Importing is the purchasing of goods or services made in another country.
- Export: Exporting is selling domestic-made goods in another country.
- Re-export: When goods are imported from a foreign country and are re-exported to buyers in some other foreign countries, it is called re-export.
Foreign Trade Investment
Foreign Trade Investment involves capital flows from one country to another, with foreign investors gaining substantial ownership stakes in domestic companies and assets. Foreign investment implies that foreigners have an active role in management as part of their investment or a large enough equity stake to influence business strategy. Types of Foreign Investment:
- Foreign Direct Investment: This type of investment involves a foreign company infusing capital into another country’s business or production units.
- Foreign Portfolio Investment: When an organization based outside the country invests in the securities market of that country, it becomes a foreign portfolio investment.
- Foreign Institutional Investment: This is a form of investment by a foreign-based company in the passive holdings of an entity in another country.
Indian Institute of Foreign Trade
The Indian Institute of Foreign Trade (IIFT) was established in 1963 as an autonomous body under the Ministry of Commerce & Industry to contribute to the skill building for the external trade sector of India. Over the years, IIFT has emerged as a national university with a focus on International Business Management and Strategy, and such focus is reflected in all three major activities of the Institute: Research, Training, and Education. Its mission is to create and foster a learning environment that enables participants to be leaders in international business with sensitivity towards society.
Foreign Trade Policy
- The Foreign Trade Policy is a legal document issued by the Indian government that is enforceable under the Foreign Trade Development and Regulation Act of 1992.
- Since the 1991 economic reforms, the FTP has been revisited and notified every five years, serving as a guiding beacon for all stakeholders.
- A foreign trade policy’s primary goal is to facilitate trade by lowering transaction and transit costs and time.
- A FTP lays out the rules for cross-border trade and reveals the government’s stance on a slew of related but critical policy variables such as technology flow, intangibles, and so on.
Major initiatives under the Foreign Trade Policy:
- Niryat Bandhu Scheme
- Duty-Free Import Authorisation (DFIA)
- Export Promotion Capital Goods (EPCG)
- Electronic Import exporter code (IEC)
- Electronic Bank Certificate (e-BRC)
- Exporter Importer Profile
- Online Filing of Applications
- Withdrawal of Seizure of Export-Related Stock
- Round-the-Clock Customs Clearance
- Single Window Interface
- Facilitating Export of Perishable Export Products
- Time Release Study
- Towns of Export Excellence (TEE)
New Foreign Trade Policy 2021-2026
- The FTP 2015-20 came into effect on the 1st of April 2015 and the same was extended by one year till 31 March 2021, due to the Covid-19 pandemic.
- New Foreign Trade Policy 2021-26, which has come into effect from 1st April 2021 for a period of five years and will strive to make India a leader in the area of international trade and channelize the synergies gained through merchandise and services exports for growth and employment to make India a USD 5 Trillion economy.
- District Export Hubs Initiative will form an important component of the new Foreign Trade Policy. The Department of Commerce through the Regional Authorities of DGFT has engaged with State/UT Governments to take forward this initiative in the districts and enable its implementation in a phased manner, to mobilize the potential of each district of the country to achieve its potential as an export hub
Foreign Trade in India
Foreign trade in India includes all imports and exports to and from India. At the level of Central Government, it is administered by the Ministry of Commerce and Industry
India’s overall exports (Merchandise and Services combined) in July 2022* are estimated to be USD 61.18 Billion, exhibiting a positive growth of 11.51 percent over the same period last year
Directorate General of Foreign Trade – FAQs
Q1. What do you mean by Foreign Trade Investment?
Ans. Foreign investment refers to the investment in domestic companies and assets of another country by a foreign investor.
Q2. What is the role of the Directorate General of Foreign Trade?
Ans. The Directorate General of Foreign Trade is responsible for formulating and implementing the Foreign Trade Policy with the primary objective of promoting India’s exports.
Q3. What are the major initiatives under the Foreign Trade Policy?
Ans. Some of the major initiatives under the Foreign Trade Policy are: Niryat Bandhu Scheme, Duty-Free Import Authorization (DFIA), Export Promotion Capital Goods (EPCG), Electronic Import exporter code (IEC), etc. (given in the article above)