UPSC Notes

Foreign Trade Policy (FTP)

PYQs

14

Articles

1

Momentum

33

Phase IFoundation

Background

Overview

Crucial for understanding India's economic strategy for global integration, balance of payments, export competitiveness, and the government's role in facilitating trade and supporting domestic industries like MSMEs.

The Foreign Trade Policy (FTP) is a comprehensive set of guidelines and instructions established by the Government of India to promote and regulate India's international trade, aiming to boost exports, facilitate imports, and enhance India's competitiveness in global markets.

Phase IIStatic core

Facts & tables

Key facts

Objectives

To boost India's exports, facilitate imports, and improve ease of doing business for exporters and importers.

Formulation Body

Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry.

Duration

Typically announced for a five-year period, with periodic amendments and updates.

Key Components

Export promotion schemes (e.g., RoDTEP), import regulations, special economic zones, and trade facilitation measures.

Formulation

Formulated by the Ministry of Commerce and Industry, implemented by DGFT.

Reference table

Static syllabus anchors

TypeReference
Conceptual areaIndian Economy

Reference table

Institutions & roles

BodyRole
Directorate General of Foreign Trade (DGFT)Formulates and implements
Ministry of Commerce and IndustryOversees
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Multi-statement analysis

Prelims angle: Conceptual understanding

Quick revision

  • Governs India's international trade.
  • Formulated by DGFT under Ministry of Commerce & Industry.
  • Aims to boost exports, facilitate imports.
  • FTP 2023 is the current policy.
  • Impacts economic growth, employment, balance of payments.

High-confidence PYQs

Topic timeline

Indian Economy

Government Notifies Inventory-based Cross-border E-Commerce Export Framework under Foreign Trade Policy 2023

05 Aug 2026 · India's FTP is a comprehensive policy framework guiding international trade, aiming to boost exports, streamline procedures, and integrate India into global value chains, with the current FTP 2023 focusing on ease of doing business and supporting MSMEs.

Read article

Related topics

Practice writing on this topic

UPSC has asked 14 linked questions on Foreign Trade Policy (FTP) in Mains. Write an answer to one — and get it evaluated.

UPSC Prelims PYQs on Foreign Trade Policy (FTP)

Practice official previous year questions asked by UPSC related to this concept.

Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. The share of agriculture in GDP increased enormo...

2017·Economy
Solve

With reference to the international trade of India at present, which of the following statements is/are correct? 1. India’s merchandise exports are less tha...

2020·Economy
Solve

Consider the following statements: The effect of devaluation of a currency is that it necessarily:- 1. improves the competitiveness of the domestic exports i...

2021·Economy
Solve

In what way(s) does the Vizhinjam International Seaport represent a structural shift in India's maritime trade and logistics policy? 1. By functioning exclu...

2026·Economy
Solve

The balance of payments of a country is a systematic record of

2013·Economy
Solve

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? 1. The foreign currency e...

2019·Economy
Solve

Which of the following is/are the most significant implication(s) of obtaining Oeko-Tex certification for Eri Silk in the global textile industry? 1. It all...

2026·Economy
Solve

Which of the following best describes the term “import cover”, sometimes seen in the news?

2016·Economy
Solve

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. No...

2020·Economy
Solve

Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

2019·Economy
Solve

Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment Select the c...

2013·Economy
Solve

With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?

2020·Economy
Solve

Consider the following 1. Foreign Currency convertible bonds 2. Foriegn Institutional investment with certain conditions 3. Global depository receipts 4. Non...

2021·Economy
Solve

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ? 1. They can sell their own goods in ...

2022·Economy
Solve

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