The recently announced first Foreign Trade Policy of India indicates a major shift in the government's opinion about the conduct of external trade. The magnitude of changes seen in the new trade policy displays a wider aspect of liberalization of export. The target of doubling India's export by 2009 and the steps taken to achieve this target are appreciable but at the same time appear doubtful in the current situation. This article looks into the issue.

The goal of pushing up the country's exports to 1.5% of the total world trade by 2009 was challenging but not insurmountable, was the statement made by the Union Commerce and Industry Minister, Kamalnath during the presentation of India's foreign trade policy 2004-2009. The most welcome feature of the new trade policy are the steps taken to liberalize export and simultaneously generate employment in rural and semi urban areas by various multilateral and bilateral initiatives. This article is a gist of the current trade policy, its diversion from the previous one, and its impact on the future growth.

Trade policy reform has been driving economic policy in India over the last decade. This has improved competition among industries which could help to meet the global requirement. In this backdrop the export target of doubling the existing figure by 2009 is creditable.