Which Ministry of Government of India is related for India's Foreign Trade Policy ?
- (a)Ministry of Defence
- (b)Ministry of External Affairs
- (c)Ministry of Commerce and Industry
- (d)Ministry of Home Affairs
Correct — C, Ministry of Commerce and Industry. India's Foreign Trade Policy is framed and notified by its Department of Commerce and implemented through the Directorate General of Foreign Trade (DGFT), under the Foreign Trade (Development and Regulation) Act, 1992.
- (a)Ministry of Defence — Handles the armed forces and national defence, not trade policy.
- (b)Ministry of External Affairs — Tempting because of the word 'foreign', but MEA runs diplomacy and foreign relations; 'foreign trade' is a Commerce function.
- (d)Ministry of Home Affairs — Deals with internal security and administration, not exports and imports.
The Foreign Trade Policy (FTP) is India's export-import policy. It is issued by the Department of Commerce within the Ministry of Commerce and Industry and administered by the DGFT. Its statutory backbone is the Foreign Trade (Development and Regulation) Act, 1992, and it sets the framework for export promotion, incentives and trade regulation.
The trap is the word 'foreign'. Aspirants reflexively pick External Affairs, but 'foreign trade' (commerce across borders) is Commerce, while 'foreign affairs' (diplomacy) is MEA. Keep the two 'foreigns' apart.
- FTP is issued by the Department of Commerce, Ministry of Commerce and Industry.
- It is implemented by the Directorate General of Foreign Trade (DGFT).
- Statutory basis: the Foreign Trade (Development and Regulation) Act, 1992.
- FTP houses tools like SEZ, EOU and Towns of Export Excellence.
- Foreign Trade Policy (export–import policy)
- Ministry of Commerce and Industry — Dept of Commerce
- DGFT — notifies and implements
FTP is framed by the Department of Commerce and carried out through the DGFT.
- Choosing External Affairs because of the word 'foreign'.
- Confusing the policy-making ministry (Commerce) with the implementing agency (DGFT).
Which ministry/authority for FTP, DGFT or SEZ; UPSC also tests the statutory basis (FT(D&R) Act, 1992) and the institutions involved.
The new Exim Policy announced in 1992 is for a period of
- (a) 3 years
- (b) 4 years
- (c) 7 years
- (d) 5 years
Answer(d) 5 years
UPSC prelims on India's EXIM (Foreign Trade) Policy — the same policy instrument that this question links to the Ministry of Commerce and Industry.
- practice — not a real PYQ
India's Foreign Trade Policy is implemented (notified) by which authority?
- (a)Directorate General of Foreign Trade (DGFT)
- (b)Reserve Bank of India
- (c)SEBI
- (d)NITI Aayog
Answer(a) DGFT — the agency under the Department of Commerce that administers the FTP.
- practice — not a real PYQ
The Foreign Trade Policy derives its legal authority from which Act?
- (a)Foreign Trade (Development and Regulation) Act, 1992
- (b)FEMA, 1999
- (c)Customs Act, 1962
- (d)Companies Act, 2013
Answer(a) Foreign Trade (Development and Regulation) Act, 1992.