ternal e tor in ndia            15.17
               import business. Another training
               programme has been launched by the
                                                              exchange rate monitoring
               Department of Commerce (DoC) for            Indian currency has seen frequent exchange rate
               exporters located in the major export       volatility in recent times. External variables have
               clusters/cities. It focuses on training     been changing more frequently than any time
               exporters to utilize free trade agreements  in past. This forces India to closely monitor the
               (FTA).                                      exchange rate dynamics of the world, its major
        (vii) Participation of States/UTs: In July 2015,   trade partners and the emerging competitors in its
               a Council for Trade Development             export market. India needs to rethink its exchange
               and Promotion (CTDP) was set up to          rate policy outlook and go for a shift in it—this
               ensure continuous dialogue with the         becomes even more clear by considering the
               governments of states/ union territories    following points19:
               (UTs) on measures for providing an                (i) International trading opportunities are
               international trade-enabling environment               becoming scarcer in the aftermath of
               and for making them active partners in                 three major events—global financial
               boosting India’s exports.                              crisis, the eurozone crisis and the stock
       (viii) Once 90 per cent of the FDI inflows are                 market meltdown of China (2015). The
               now under ‘automatic route’ together                   world ‘export-GDP ratio’ has declined
               with fully converted to ‘online’ procedure,            since 2011. Going forward a sharp
               the Government decided in the Union                    rise in the US dollar is expected with a
               Budget 2017-18 to phase out (abolish)                  corresponding decline in the currencies
               the multi-ministerial body foreign                     of India’s competitors, notably China
               investment promotion board (FIPB) in                   and Vietnam. Already, since July 2015,
               the year. In future, the FDI proposals not             the yuan has depreciated about 11.6 per
               coming under the automatic route will                  cent (form July 2015 to December 2016)
               be considered by either the concerned                  against the dollar and as a consequence
               ministries or the regulatory body.                     the rupee has appreciated by 6 per cent
         (ix) The Union Budget 2017-18 promised                       against the yuan. Given the situation
               further liberalisation of the FDI policy               there has been a continuous pressure of
               regarding which the announcements                      capital outflows on India.
               came later on.                                  (ii) To sustain high growth rate, India needs
          The Government of India has requested the                   support of exports in the coming times.
     state/UTs to develop their export strategy, appoint              And this is only possible once rupee’s
     export commissioners, address infrastructure                     exchange rate is able to maintains the
     constraints restricting movement of goods,                       competitive edge over its competitors in
     facilitate refund of value-added tax (VAT)/octroi/               the export market. The rise of countries
     state-level cess, address other issues relating to               such as Vietnam, Bangladesh, and the
     various clearances and build capacity of new
     exporters in order to promote exports.                  19.    Economic Survey 2016-17, Government of India,
                                                                    Ministry of Finance, N. Delhi, Vol. 1, pp. 23-25.