Is PM Modi need to give a strong back to a new export policy in India, as the target set in 2018 to reach $60 billion was not achieved. Exports declined during the initial years of the BJP government, from $43.25 billion in 2013-14 to $35.6 billion in 2019-20. But imports increased from $15.53 billion to $21.86 billion.
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As per the latest reports, the government is reviewing the New export policy in India to boost farm-based exports amid changing global trade trends. The Export Policy DGFT is expected to include more flexible rules for agri-trade, allowing farmers and exporters to explore international markets more freely under the recent EXIM policy updates.
Was The 2018 Export Policy A Bit Too Ambitious?
The government introduced an Agricultural Export Policy in December 2018. The policy aimed to improve Indian agriculture through sustainable policy instruments.
However, due to multiple external and domestic challenges, the goals of the Export Policy of India could not be achieved as expected. With political ups and downs in the country, it is difficult to determine whether the 2018 export policy was the right decision or just a bridge too far.
Also Read: Sub Mission On Agricultural Mechanisation
Objectives Set For 2018 Agricultural Export Policy
The 2018 policy had strong and clear objectives that were meant to guide India’s growth in global agricultural trade. It also served as a foundation for the Export policy schedule 2, defining the export list and regulations for farm products.
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To double agricultural exports from $30 billion to $60+ billion by 2022.
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Maintain a stable trade policy regime.
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Promote exports of indigenous, organic, traditional, and non-traditional products.
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Double India’s share in global agricultural exports.
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Enable farmers to benefit from export opportunities in overseas markets.
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Provide solutions for pursuing market access, tackling barriers and dealing with sanitary issues.
Why Did The 2018 Export Policy Not Work?
The 2018 export policy of India was not achieved due to several factors. Read the following points to understand it better:-
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The demand for agricultural exports has reduced due to fluctuating global commodity prices and trade wars.
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Inadequate infrastructure, supply chain, and limited technology.
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Changes in trade policies brought uncertainty.
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Problems arose due to sanitary and phytosanitary standards.
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Unpredictable weather conditions.
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Inadequate funds to support farmers and production.
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Global competition.
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The Russia-Ukraine war affected trade routes.
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The COVID-19 pandemic impacted production and export activities.
Also Read: What Is Expected From The New Export Policy?
Is There A Need For A New Agri-Trade Policy?
Yes, there is a strong need for a New export policy in India to enhance productivity, value addition, and branding in the agriculture sector. The Export Policy DGFT can introduce new measures to support exporters in facing global market challenges.
The reasons for a new agricultural policy are
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Fighting market fluctuations.
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Face export competitiveness.
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Enhance technological innovations.
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Promote organic and processed foods.
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Maintain environmental sustainability.
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Prepare for climate variations.
Conclusion
Overall, India’s agricultural sector needs a stronger and more adaptive Export Policy of India to meet future goals. The New export policy in India should not only target higher export numbers but also secure farmers’ income and sustainable growth.
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