Strategic Trade Policy Framework (2015-18).

The Strategic Trade Policy Framework STPF (2015-18) has been designed learning from the previous two medium term frameworks (2009-12) and (2012-15). It has been ensured that procedural and budgetary bottlenecks are removed in STPF 2015-18. All business processes have simultaneously been formulated. Budgetary allocation of Rs. 6 Billion has been approved to implement the trade policy initiatives for year 2015-16. Continued budgetary support in FY 2016-17 and 2017-18 will be critical for achieving desired results. Targets STPF 2015-18 aims to achieve teh following targets by 30 June 2018: a) Enhancement of annual exports to US$ 35 Billion; b) Improve Export Competitiveness; c) Transition from ‘factor-driven’ economy to ‘efficiency-driven’ and ‘innovation-driven’ economy; d) Increase share in regional trade Key Enablers.
To achieve these targets, the key enablers are: a) Competitiveness (quality infrastructure, labour productivity, access to utilities, and level of technological development); b) Compliance to standards (convergence of local & international standards, protection of intellectual property, and effective and efficient disputes resolution mechanism); c) Policy environment (monetary policy, tariff & tax regime, and synergic industrial & investment policies); d) Market access (multilateral, regional, and bilateral).
Pillars STPF 2015-18 has identified four main pillars on the basis of (i) key enablers, (ii) evaluation of STPF 2012-15, (iii) emerging global trade scenario and (iv) extensive consultation with the private sector and other stakeholders. These pillars are as follows: a. Product sophistication and diversification (research and development, value addition, and branding) b. Market access (enhancing share in existing markets, exploring new markets, trade diplomacy and regionalism) c. Institutional development and strengthening (restructuring, capacity building, and new institutions) d. Trade facilitation (reducing cost of doing business, standardization, and regulatory measures). In order to achieve STPF goals, the following measures will be undertaken in each of the four pillars. Product Sophistication and Diversification One of the targets of this STPF is transition from ‘factor-driven economy’ to ‘efficiency-driven’ and subsequently ‘innovation-driven economy’. Research & Development, value addition and branding are vital for effecting this transition. Market Access