Trade Policy
STRATEGIC TRADE
POLICY FRAMEWORK (STPF) 2015-18
Overviewing
the previous two medium term frameworks i.e. 2009-12 and 2012-15, it has been
ensured that procedural and budgetary bottlenecks are removed in STPF 2015-18.
All business processes have simultaneously been formulated. Budgetary
allocation of Rs. 6 Billion has been approved to implement the trade policy
initiatives for year 2015-16. Continued budgetary support in FY 2016-17 and
2017-18 will be critical for achieving desired results.
Targets - STPF 2015-18 aims to achieve following
targets by June 30, 2018:
a.
Enhancement of annual exports to US$ 35 Billion
b.
Improve Export Competitiveness
c.
Transition from ‘factor-driven’ economy to ‘efficiency-driven’ and
‘innovation-driven’ economy
d.
Increase share in regional trade
Key Enablers - To
achieve the above targets, the key enablers are:
a.
Competitiveness
(quality infrastructure, labour productivity, access to utilities, and level of
technological development)
b.
Compliance
to standards (convergence of local & international standards, protection of
intellectual property, and effective
and efficient disputes resolution mechanism)
c.
Policy
environment (monetary policy, tariff & tax regime, and synergic industrial
& investment policies)
d.
Market
access (multilateral, regional, and bilateral)
Pillars - STPF 2015-18 has identified four main
pillars on the basis of (i) key enablers, (ii) evaluation of STPF 2012-15,
(iii) emerging global trade scenario and (iv) extensive consultation with the
private sector and other stakeholders. These pillars are as follows:
a.
Product sophistication and diversification (research and development, value
addition, and branding)
b.
Market access (enhancing share in existing markets, exploring new markets,
trade diplomacy and regionalism)
c.
Institutional development and strengthening (restructuring, capacity building,
and new institutions)
d.
Trade facilitation (reducing cost of doing business, standardization, and
regulatory measures)
TRADE POLICY
INITIATIVES 2015-18
In
order to achieve STPF goals, the following measures will be undertaken in each
of the four pillars.
a) Product
Sophistication and Diversification
One
of the targets of this STPF is transition from ‘factor-driven economy’ to
‘efficiency-driven’ and subsequently ‘innovation-driven economy’. Research
& Development, value addition and branding are vital for effecting this
transition.
Technology
Up-gradation :- On
the basis of research and consultations with stakeholders, it has been
identified that use of inefficient technologies is the principal constraint in
exports of selected sectors i.e., fans, home appliances, rice, cutlery and
sports goods. In order to increase the sophistication level and to realize true
potential of these sectors, following incentives for technology up-gradation
will be provided in the shape of investment and mark-up support:
a.
20% investment support upto a maximum of Rs. 1 (one) Million per annum per
company will be available for import of new plant and machinery.
b.
50% of markup support on up-gradation of technology will be provided for import
of new machinery/plant, subject to a maximum of Rs. 1 (one) Million per annum
per company