The Central Government is in the process of drafting an amendment to the Foreign Trade Policy (FTP). During this process, it circulates a draft for…

CA Final · Indirect Tax Laws · RTP · January 2026
The Central Government is in the process of drafting an amendment to the Foreign Trade Policy (FTP). During this process, it circulates a draft for stakeholder consultation and provides them 30 days for feedback. Global Exporters' Association (GEA) submits detailed suggestions, on the same. The Government acknowledges receipt of their suggestions but, in the final amendment, these recommendations are not accepted. GEA requests the Government to explain why their views were rejected. The Ministry provides a brief explanation, stating that acceptance of the suggestions would conflict with India's international obligations under a trade agreement. Separately, another association, Fresh Food Exporters Forum (FFEF), also submitted views relating to said amendment. Their suggestions were not incorporated, and the Government did not provide any reasons for the rejection. Based on the above mentioned information, you are required to answer the following: (a) Is the Central Government obliged to always consult stakeholders before formulating or amending the FTP? (b) Whether the action taken by Government for rejecting the proposal of GEA and giving only limited reasons was valid? Explain with brief reasoning. (c) Can FFEF demand the Government to legally disclose the reasons for not accepting its feedback? Also, list the situations where the Government is not required to provide reasons for rejecting stakeholder views.

Suggested Answer and Working Notes:

(a) The Central Government, in the course of formulation of FTP, as and when it deems reasonable to do so, may seek views/suggestions/ comments/ feedback from relevant stakeholders, including importers/exporters/industry experts with regard to formulation, incorporation of specific provision(s) or amendments in the FTP. However, Central Government reserves the right to suo moto formulate, amend or incorporate any specific provisions, without seeking views, suggestions, comments or feedback from stakeholders. Thus, the Central Government is not obliged to always consult stakeholders before formulating or amending the FTP. (b) If the views, suggestions, comments or feedback are not incorporated in the FTP, the Central Government may to the extent possible and if deems reasonable to do so, provide, to the relevant stakeholders, including importers/exporters/industry experts the reasons for not considering their views etc. while formulating, amending or incorporating specific provisions in the FTP. Thus, the action taken by Government is valid in rejecting the proposal of GEA and giving only limited reasons. (c) Central Government is not obliged or mandated to disclose reasons for not incorporating views etc., that No legal right is conferred on any person to seek reasons for his views, comments, opinions or feedback, not being incorporated in the FTP thereof. Disclosure is at the discretion of the Government. Thus, FFEF cannot demand the Government to legally disclose the reasons for not accepting its feedback. The Government is not required to provide reasons for rejection in case of stakeholder views that:- (i) adversely affect trade relations with any foreign country. (ii) adversely affect food, economic or national security of India; (iii) is in conflict with any government policies, strategic programs, international obligations or commitments or long-term plans and would undermine the objectives of such policies or programs; (iv) addresses matters unrelated to trade or serve narrow, private or special interests to the detriment of or contrary to the broader public interest, good; or (v) would require the disclosure of confidential or classified information. Nothing shall confer any legal right whatsoever on any person to seek reasons for his views comments, opinions or feedback, not being incorporated in the FTP thereof.

Topics: Foreign Trade Policy

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