Role of foreign trade policies in economic growth and development

Abstract

Foreign Trade Policy (FTP) plays a significant role in promoting economic growth and development by regulating and encouraging international trade. This is an attempt to examine the role of Foreign trade Policy (FTP) in stimulating industrial growth, generating employment, attracting foreign investment and promoting technological advancement. Foreign Trade Policy serves as an important tool for increasing exports, managing imports, improving balance of payments, and strengthening a country’s position in the global market. The research highlights how effective trade policies contribute to higher productivity, economic diversification, and sustainable development. Using secondary data from government reports, research studies, and international trade sources, the study analyzes the relationship between foreign trade policy and economic performance. The study finds that a well-structured and flexible Foreign Trade Policy contributes significantly to economic growth and helps address challenges emerging from globalization and competitive trade environments. Thus, Foreign Trade Policy remains an essential tool for long-term economic development.