State the challenges before the foreign trade policy of India.ORState

1.	State the challenges before the foreign trade policy of India.ORState the challenges that India faced as a part of its foreign trade policy.
Answer» To bring about economic reforms India had framed foreign trade policy. This policy regulates India’s trade with other countries. Challenges faced by the foreign trade policy of India: India needs to control import of certain products so that it can protect domestic production from competition by foreign goods. Ensure enough imports of technology, machines, spare parts as well as, resources to help increase domestic production and import substitution. Control imports of those goods that are not needed for India’s development. This would help to save foreign exchange. Encourage exports so that earning of foreign exchange can be increased. This will help to make payment for items that we import. Many Indian goods could not compete against the quality of foreign goods. Hence it was difficult to increase the exports. Promote export of goods produced by small scale sector. The challenges of foreign trade are different from those of domestic trade as foreign trade involves foreign exchange. The foreign trade policy of India was formulated and amended from time to time so that India could deal with the above challenges in the best possible manner.

State the challenges before the foreign trade policy of India.ORState the challenges that India faced as a part of its foreign trade policy.

Answer»

To bring about economic reforms India had framed foreign trade policy. This policy regulates India’s trade with other countries.

Challenges faced by the foreign trade policy of India:

India needs to control import of certain products so that it can protect domestic production from competition by foreign goods.
Ensure enough imports of technology, machines, spare parts as well as, resources to help increase domestic production and import substitution.
Control imports of those goods that are not needed for India’s development. This would help to save foreign exchange.
Encourage exports so that earning of foreign exchange can be increased. This will help to make payment for items that we import.
Many Indian goods could not compete against the quality of foreign goods. Hence it was difficult to increase the exports.
Promote export of goods produced by small scale sector.
The challenges of foreign trade are different from those of domestic trade as foreign trade involves foreign exchange.
The foreign trade policy of India was formulated and amended from time to time so that India could deal with the above challenges in the best possible manner.