 "PM reviews exports policy with Sitharaman")
During the meeting, the prime minister apparently asked Sitharaman to increase the export of items that have demand in the international markets and not those that are more in supply, officials told Business Standard.
Modi pushed for greater diversification of the country's export basket in traditional and newer markets.
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The prime minister wants the new foreign trade policy to take a fresh view on augmenting exports, which reached $312 billion in 2013-2014, up four per cent over $300 billion in 2012-2013, according to official statistics.
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The foreign trade policy is expected to come into effect from 2014 till 2019 and have three main focus areas - relating to ease of doing business, reduction of transaction costs and better use of the free trade agreements (FTAs).
A study by the commerce department had found the utilisation rate of free trade agreements by Indian exporters is low when compared with that of partner countries. This led to an inverted duty structure, wherein exports either fell or remained stagnant but imports from partner countries increased.
For ease of doing business, the government is expected to reduce the documents required for exports. Officials said the new FTP will draw a road map on increasing exports, which had registered double-digit growth in May and June.
Total exports during the first quarter of this year grew a healthy 9.31 per cent to $80 billion against $73 billion in the corresponding period last year, driven by strong demand for engineering goods, ready-made garments and petroleum products.