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CS Executive · Economic, Commercial and Intellectual Property Laws · Foreign Trade Policy and Procedure

Under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, how does the Central Government formulate and announce the foreign trade policy?

The Central Government formulates and announces the foreign trade policy by notification in the Official Gazette, and does so from time to time. The Act sets no fixed term, and no parliamentary resolution or RBI agreement is required for the policy.

  1. ABy notification in the Official Gazette, from time to timeCorrect
  2. BBy a resolution passed by both Houses of Parliament every five years
  3. CBy an order of the Director General of Foreign Trade without any gazette publication
  4. DBy an agreement with the Reserve Bank of India

Explanation

Section 5 says the Central Government may, from time to time, formulate and announce the foreign trade policy by notification in the Official Gazette. It is not tied to a fixed term or to parliamentary resolution. Option C is wrong because the power rests with the Central Government and is exercised by gazette notification.

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