What adverse impacts could be generally expected on account of a foreign trade policy and what mechanisms are needed to be developed to cope with these?
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Foreign trade policy should be designed in such a manner as to provide a favourable balance of payment for the country, i.e. the gross earning from exports should be in excess of the gross expense on account of imports. At the same time, the Government should adhere to the understanding arrived at under GATT or the General Agreement on Tariffs and Trade.
Sometimes, exporters from some countries dump material into India at lower than the normal price. In such events, the Government should introduce anti-dumping or safeguard duty to protect indigenous manufactures. But, these are normally clamped on specific complaints filed by local industries producing identical goods.
India, like other countries, is a signatory to many bilateral and some multilateral trade agreements, where the duty is charged at a concessional rate, e.g. with countries like Thailand, Indonesia, SAARC nations etc. These agreements should generally be drawn up keeping the local industry in mind and, if certain industries are affected while certain others are not, there should be a negative list of imports for industries that are likely to be affected.
India is a big importer of crude oil. As this is an item of vital importance, careful price considerations and regular availability must be factored in while entering into contracts. As is progressively being developed, alternative energy sources should be explored within the country to bring down the country's import bill.
Sometimes, exporters from some countries dump material into India at lower than the normal price. In such events, the Government should introduce anti-dumping or safeguard duty to protect indigenous manufactures. But, these are normally clamped on specific complaints filed by local industries producing identical goods.
India, like other countries, is a signatory to many bilateral and some multilateral trade agreements, where the duty is charged at a concessional rate, e.g. with countries like Thailand, Indonesia, SAARC nations etc. These agreements should generally be drawn up keeping the local industry in mind and, if certain industries are affected while certain others are not, there should be a negative list of imports for industries that are likely to be affected.
India is a big importer of crude oil. As this is an item of vital importance, careful price considerations and regular availability must be factored in while entering into contracts. As is progressively being developed, alternative energy sources should be explored within the country to bring down the country's import bill.
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