Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. The global transformation of trade through digitisation has added intricacies in international trade transactions. Therefore, a holistic approach has become more important than ever, in drafting the new Foreign Trade Policy (FTP), 2022. Analyse. (250 words)
Difficulty level: Tough
Reference: InstaPedia
Why the question: The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2022 Secure timetable.
Key Demand of the question: To understand the present-day challenges in formulating a Foreign trade policy, as the focus has shifted to digitisation.
Directive word:
Critically examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
Introduction:
Begin by mentioning how the trade dynamics across borders have changed in the past one decade.
Body:
First, mention the roles and responsibilities of DGFT (Director General of Foreign Trade) to take confidence of various stakeholders such as Industry chambers, trade associations, commodity boards etc.
Next, highlight the various factors of digitisation that brought a paradigm shift – such as changing needs of a digital economy, role of GST, balancing the export and import industry, alignment of the FTP with the macro economic vision of the nation etc.
Next, analyse trade policy in the backdrop of restrictive trade policy tools such as tariffs, export restrictions, anti dumping duties etc.
Conclusion:
Conclude by saying that India needs to take a fine policy balance of promotion of Foreign trade alongside the Aatmanirbhar mission.
