The Foreign Trade Policy (FTP) for 2023-28 has recently been announced by the Government of India, with a focus on ease of doing business, reduction in transaction costs, and e-initiatives. Let’s dive deeper into the objectives and specific initiatives of the FTP.
Objectives
1. Ease of doing business
One of the key objectives of the FTP is to make it easier to do business in India. To achieve this, the policy introduces several measures aimed at simplifying the approval process for businesses, reducing processing times, and eliminating the need for physical interfaces.
2. Reduction in transaction cost
Another objective of the FTP is to reduce the transaction costs associated with foreign trade. This will be achieved through initiatives aimed at reducing user charges for MSMEs under AA and EPCG, and by eliminating the need for physical interfaces in the approval process.
3. E-initiatives
Finally, the FTP places a strong emphasis on e-initiatives aimed at making the process of doing business more efficient and reducing the need for physical documentation. These initiatives will include the introduction of e-certificates of origin and paperless filing of export obligation discharge applications.
Specific Initiatives
1. Online approvals without physical interface
One of the key initiatives of the FTP is the introduction of online approvals without physical interfaces. This will include automatic approval of permissions under the Foreign Trade Policy, reducing processing times and ensuring immediate approval for applications under the automatic route for exporters.
2. Reduction in user charges for MSMEs under AA and EPCG
The FTP will also reduce user charges for MSMEs under AA and EPCG. This will include a reduction in application fees for Advance Authorization and EPCG Schemes, providing benefits to 55-60% of MSMEs. Additionally, the fee structure for these schemes will be provided in rupees, making it easier for businesses to understand and plan for costs.
3. E-Certificate of Origin
The FTP introduces a revamp of the e-Certificate of Origin platform. This will allow for self-certification of CoOs, automatic approval of CoOs where feasible, and initiatives for electronic exchange of CoO data with partner countries. These initiatives will greatly reduce the time and cost associated with obtaining CoOs, making it easier for businesses to engage in foreign trade.
4. Paperless filing of export obligation discharge applications
Finally, the FTP aims to make the entire lifecycle of authorization paperless. This will include paperless filing of export obligation discharge applications, eliminating the need for physical documentation and further reducing transaction costs.
Conclusion
In conclusion, the FTP for 2023-28 introduces several key initiatives aimed at making it easier and more cost-effective for businesses to engage in foreign trade. By introducing online approvals without physical interfaces, reducing user charges for MSMEs, introducing e-certificates of origin, and paperless filing of export obligation discharge applications, the FTP will greatly simplify the approval process and reduce transaction costs for businesses. These initiatives are a step in the right direction towards making India a more attractive destination for foreign investment and promoting economic growth.
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