The Directorate General of Foreign Trade (DGFT) is a part of the Indian Government’s Ministry of Commerce and Industry. This aspect of the Indian government is in charge of all things related to foreign trade. Its main responsibility is to administer and regulate India's international trade activities.

Detailed Overview

Main Function

The DGFT has the power and authority to create and implement various rules and guidelines related to foreign trade. It is responsible for formulating India's export and import policies, which are referred to as the Foreign Trade Policy (FTP).

More About Foreign Trade Policy (FTP)

India's FTP, developed by the DGFT, aims to increase the country's foreign trade. It does so through various trade adjustments, duty benefits, and several schemes focused on the promotion of goods’ exports.

Administering Trade Laws

Another essential role of the DGFT involves dealing with laws related to foreign trade. It ensures that these laws are appropriately implemented and also resolves any related dilemmas, ensuring all international trade activities comply with the Indian legal framework.

Key Entities

The DGFT is not alone in its quest for efficient foreign trade. It collaborates with several other entities, including the Reserve Bank of India, Export Inspection Agency, Customs Department, and others. These institutions collectively ensure the smooth flow of foreign trade.

The DGFT also has various regional offices across India, ensuring a wider reach and better operational activities related to foreign trade.

The Indian Trade Classification (ITC)

This is another crucial aspect of the DGFT. It is responsible for maintaining the ITC (Harmonised System) at par with international standards. This system classifies goods traded internationally— it's essential for standardizing trade goods and maintaining organized trade records.

Importer-Exporter Code (IEC)

The DGFT also issues the Importer-Exporter Code (IEC) - a unique 10-digit code that businesses must obtain to engage in import or export activities in India.

Conclusion

In simple terms, the DGFT is a vital institution of the Indian Government that facilitates, regulates, and promotes foreign trade. It ensures the implementation of laws and also collaborates with other government entities to enable the growth and efficient functioning of India's trade activities with foreign countries.