The Indian government has launched the Foreign Trade Policy (FTP) 2023, aiming to increase the country’s exports to $2 trillion by 2030. This policy introduces a shift from an incentives-based regime to a remission and entitlement-based one to achieve this ambitious goal.
Key Features of FTP 2023:
Dynamic and Adaptive Policy
Unlike previous five-year policies, FTP 2023 does not have an end date. Director General of Foreign Trade (DGFT) Santosh Sarangi explained that the policy will be updated periodically based on emerging trade circumstances.
Positive Export Outlook
DGFT Santosh Sarangi shared an optimistic outlook for India’s exports, expecting to close the fiscal year with exports worth $760-770 billion, up from $676 billion in 2021-22.
Futuristic Focus
Commerce and Industry Minister Piyush Goyal emphasized that FTP 2023, effective from April 1, 2023, is designed with a focus on technology and trade facilitation. It includes proposals like reducing MSME user charges for trade licenses and offering a one-time amnesty for default in export obligations.
New Towns of Export Excellence
FTP 2023 identifies four new Towns of Export Excellence (TEE) – Faridabad, Moradabad, Mirzapur, and Varanasi – in addition to the existing 39 TEEs.
E-commerce Export Benefits
One of the key features of FTP 2023 is extending benefits to e-commerce exports, which are predicted to reach $200-300 billion by 2030. The value limit for exports through courier service is being increased from ₹5 lakh to ₹10 lakh per consignment.
Global Currency Ambition
The policy also aims to make the Indian rupee a global currency and enable international trade settlement in domestic currency.
Government’s Commitment
Gautam Khattar, Principal at Price Waterhouse & Co LLP, praised the policy for focusing on reducing compliance burdens on exporters and simplifying regulations. The Department of Commerce is undergoing restructuring to ensure it is ready for future trade needs.
Conclusion
The FTP 2023 highlights the government’s commitment to boosting India’s export potential and adapting to global trade trends, aiming for a substantial increase in exports by 2030.