10. TRADE POLICY
10.1 Trade policy impacts significantly on the domestic production level and profile.
The import and export regime, whether tariffs or export promotion measures
constitute important policy instruments which shape a country’s production profile.
With increasing globalization and international engagement, it is critical that these
policy instruments be aligned carefully so that domestic manufacturing is not
10.2 Trade policy is no longer restricted to border measures. International trade
rules now encompass measures which are more internal to an economy than just
border measures, for example, public/government procurement. Government
procurement can be a significant domestic policy instrument by which industry can
be seeded/supported through local value addition requirements. This policy
proposes government procurement as a significant instrument. As such it needs to
be ensured that the available flexibilities are not diluted at this juncture when the
attempt is to strengthen the manufacturing sector.
10.3 The policy will take active measures to protect export of products and services
from India from border taxes or other border measures that may be imposed by
partner countries on the grounds of protection of environment including those related
to GHG emissions reduction.
10.4 NMCC will be authorized to examine and make recommendations on duty
structures and other measures to the extent that they impact the manufacturing
sector in order to ensure that changes therein do not adversely affect the