Amendment to FTP 2023: Govt Introduces Provisions for Consultations/Suggestions from Stakeholders, Inserts Para 1.07A and Para 1.07B [Read Notification]

The Central Government has recently amended the Foreign Trade Policy ( FTP ) 2023 by inserting two new provisions, Para 1.07A and Para 1.07B, to improve consultation and feedback processes with stakeholders.

This amendment, made under the powers of the Foreign Trade (Development & Regulation) Act, 1992, aims to involve relevant stakeholders, such as importers, exporters, and industry experts, in the formulation or amendment of the policy. Foreign Act 1992

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Under Para 1.07A, the government can seek views, suggestions, comments, or feedback from stakeholders when formulating or making changes to the Foreign Trade Policy. The government may allow a 30-day period for stakeholders to submit their feedback. However, the government also reserves the right to make changes to the policy without consulting stakeholders if it deems necessary.

Para 1.07B introduces a mechanism where, after receiving feedback, the government may, if appropriate, explain why certain suggestions or comments were not included in the policy. However, the government is not obligated to provide reasons if the feedback could harm trade relations, national security, or conflict with other government policies. Additionally, reasons do not have to be given for feedback that is unrelated to trade or serves private interests.

Under this Para 1.07B, it has provided that :

1. “has the potential to or will adversely affect trade relations with any foreign country;
2. would adversely affect food, economic or national security of India;
3. is in conflict with any government policies, strategic programs, international obligations or commitments or long-term plans and would undermine the objectives of such policies or programs;
4. addresses matters unrelated to trade or serve narrow, private or special interests to the detriment of or contrary to the broader public interest, good; or
5. would require the disclosure of confidential or classified information.”

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This amendment provides a shape way for stakeholders to be involved in the policy-making process, while also giving the government the flexibility to act in the national interest. However, it also clarifies that stakeholders do not have a legal right to demand reasons for feedback not being accepted.

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