The document discusses India's foreign trade policy from 2009-2014 in the context of the global recession. It notes that while India was not affected as severely as other economies, exports still declined due to contracting demand in traditional markets. The policy's main objectives were to double India's exports and share of global merchandise trade by 2014 and 2020 respectively in order to stimulate export growth. Specific goals included arresting the declining export trend, reviewing targets after two years, and encouraging exports through fiscal incentives and improved market access.

1. The year 2009 needs no introduction of its own as we know that the world was going through the period
of global recession due to the sub-prime crisis and the back to back downgrading of the US credit rating
by the largest credit rating firm S&P. In such a challenging situation the UPA Government, in its second
innings assumed office. Countries across the world had been affected in varying degrees and all major
economic indicators of industrial production – trade, capital flows, unemployment, per capita
investment and consumption have taken a hit.
India was not affected to the same extent as compared to the other economies of the world, yet the
exports suffered a decline, due to a contraction in demand in the traditional markets of India’s exports.
In the grim economic climate it was indeed a daunting task to formulate the foreign trade policy due to
declining demand in the developed world .In order to maintain fruitful trade practices in the coming five
years it is needed that motion strategies and policy measures are set in such a manner that it will
catalyze the growth of exports.
Following are the objectives of foreign trade policy 2009-2014
1. To double India’s export
To arrest and reverse declining trend of exports is the main aim of the policy. This aim will be reviewed
after two years. To double India’s exports by March 2014. There was increase in growth by 15 % in
March 2013 and annual growth of around 25% by 2014.
2. To double India's share in global merchandise
To double India's share in global merchandise trade by 2020 as long as term aim of this policy. India’s
share in global merchandise exports was 1.45% in 2008.
3. To encourage exports
The main objective of the Government’s EXIM Policy is to promote exports to the maximum extent. To
set in motion the strategies and policy measures which catalyze the growth of exports. To encourage
through a "mix of measures including fiscal incentives, institutional changes, procedural rationalization
and efforts for enhance market access across the world and diversification of export markets. The
Indian Foreign Trade Policy of 2009-2014 has added 26 new markets to its aim of achieving the export
target of US$ 200 billion and export growth target of 15 percent for the first two years.