DGFT Restructuring

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Abhishek Jain,  MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur

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The Director General of the Foreign Trade will be undergoing a complete restructure in the coming future. The commerce ministry has invited bids from global consultancy companies to conduct an in-depth study of the scope and nature of the functions and operational tasks undertaken by the Directorate General of Foreign Trade (DGFT). The terms of reference for the consultant includes “the issue of whether an organization like DGFT is required by India in view of the above analysis to fulfil the optimal prudent policy and regulatory goals and objectives.

Directorate General of Foreign Trade (DGFT) was established by then Finance Minister P.Chidambram by replacing the office of the Chief Controller of Imports and Exports (CCI&E) as part of liberalizing the decision-making process.related to trade facilitation”.

The government believes that most of the responsibilities of the DGFT can either be automated or can be handled by other departments of Commerce ministry such as Customs. This is seen as one of many steps were taken by the government to enhance e-governance and ease of doing business.

Many Economists believes that DGFT holds a lot of relevance in the Indian context. Though its regional work could be delegated to the regional offices.

References

1.http://www.vccircle.com/news/engineering/2016/04/05/india-review-steel%E2%80%99s-minimum-import-price-next-week

2. http://www.livemint.com/Industry/VNa35EVHqiuMckndjv3DYO/Government-calls-for-bids-to-review-relevance-of-trade-regul.html

3. http://www.business-standard.com/article/economy-policy/a-relook-at-dgft-s-prudence-relevance-116040400022_1.html

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