The Indian Government recently announced the Foreign Trade Policy (FTP) 2023-28, which aims to boost manufacturing in the country. The policy includes several initiatives and schemes that are expected to provide significant benefits to the manufacturing sector in India. Let’s take a closer look at some of the key highlights of the FTP 2023-28.
PMMITRA Scheme added to EPCG Scheme
Under the Common Service Provider (CSP) Scheme of the Export Promotion Capital Goods (EPCG) Scheme, the Prime Minister Mega Integrated Textile Region and Apparel Parks (PMMITRA) scheme has been added as an additional scheme that is eligible to claim benefits. This move is expected to encourage investment in the textile and apparel manufacturing sector and provide a boost to the Make in India initiative.
Exemption for Dairy Sector
The dairy sector has been exempted from maintaining an Average Export Obligation, which will help support the sector in upgrading its technology. This initiative is expected to provide a significant boost to the dairy sector, which is an important contributor to the Indian economy.
Green Technology Products
The FTP 2023-28 has added Battery Electric Vehicles (BEV) of all types, Vertical Farming equipment, Wastewater Treatment and Recycling, Rainwater harvesting system and Rainwater Filters, and Green Hydrogen to the Green Technology products. This move will make these products eligible for reduced Export Obligation requirements under the EPCG Scheme. This initiative is expected to encourage the adoption of eco-friendly technologies and promote sustainable manufacturing practices.
Self-Declaration Basis for Apparel and Clothing Sector
The Special Advance Authorisation Scheme has been extended to the export of the Apparel and Clothing sector on a self-declaration basis. This move will facilitate the prompt execution of export orders and provide a significant boost to the Apparel and Clothing manufacturing sector.
Extension of Self-Ratification Scheme
The benefits of the Self-Ratification Scheme for fixation of Input-Output Norms have been extended to 2-star and above status holders in addition to Authorized Economic Operators. This initiative is expected to simplify the process of fixing Input-Output Norms and promote ease of doing business.
Double Weightage for Fruits and Vegetables Exporters
Fruits and Vegetables exporters are being included for double weightage for counting export performance under the eligibility criteria for Status House certification. This initiative is in addition to the existing MSME sector, which also receives double weightage. This move will provide a significant boost to the Fruits and Vegetables export sector, which is an important contributor to the Indian economy.
In conclusion, the FTP 2023-28 has announced several key initiatives and schemes that are expected to provide a significant boost to the manufacturing sector in India. The initiatives are expected to encourage investment, promote sustainable manufacturing practices, simplify processes, and provide support to key sectors such as dairy and Fruits and Vegetables export. The implementation of these initiatives is expected to contribute to the Make in India initiative and promote India’s position as a leading manufacturing hub.