India’s Foreign Trade Policy (FTP) 2023-28 aims to promote economic growth and simplify foreign trade operations. The policy emphasizes ease of doing business, reduction in transaction costs, and e-initiatives, along with initiatives to promote exports, boost manufacturing, and facilitate e-commerce exports. The policy proposes the implementation of the Districts as Export Hubs initiative to support decentralized export promotion.
Ease of Doing Business, Reduction in Transaction Cost and E-Initiatives
The Foreign Trade Policy (FTP) for 2023-28 in India aims to simplify the approval process for businesses, reduce transaction costs, and introduce e-initiatives. Key initiatives include online approvals without physical interfaces, reduced user charges for MSMEs, e-certificates of origin, and paperless filing of export obligation discharge applications. The goal is to make it easier and more cost-effective for businesses to engage in foreign trade and promote economic growth.
Ease of Doing Business, Reduction in Transaction Cost and E-Initiatives: FTP 2023-28
Export Promotion Initiatives
The FTP 2023-28 has introduced initiatives to promote exports and facilitate trade in India. These include rationalizing export performance thresholds for recognition of exporters as status holders, allowing merchanting trade involving shipment of goods from one foreign country to another, accepting rupee payments under FTP schemes, and declaring four new towns of export excellence. These initiatives will reduce transaction costs and enable more exporters to achieve higher status, ultimately promoting international trade and economic growth.
Export Promotion Initiatives: FTP 2023-28
Districts as Export Hubs Initiative
The Districts as Export Hubs Initiative is a strategy proposed under the Foreign Trade Policy (FTP) 2023-28 of India to boost exports through decentralized export promotion. The initiative proposes various strategies such as creating institutional mechanisms, identifying potential export products, building capacity for new exporters, addressing infrastructure and logistics bottlenecks, and converging ongoing schemes to support these initiatives. The implementation of these strategies is expected to create an enabling environment for exports at the district level, leading to increased foreign trade and economic growth for India.
Districts as Export Hubs Initiative: FTP 2023-28
E-Commerce Exports Initiatives
The Foreign Trade Policy (FTP) 2023-28 has introduced measures to facilitate e-commerce exports in India. E-commerce exporters will now be eligible for the same benefits as traditional exporters, and necessary IT systems will be enabled within the next six months to streamline e-commerce export facilitation. Dak Ghar Niryat Kendras and designated hubs with warehousing facilities will also be operationalized to facilitate cross-border e-commerce and reduce the cost and time involved in logistics. These initiatives will help boost India’s exports, contribute to the country’s economic growth, and help small and medium-sized businesses, artisans, weavers, craftsmen, and MSMEs reach international markets.
E-Commerce Exports Initiative: FTP 2023-28
Initiatives to Boost Manufacturing in India
The Foreign Trade Policy (FTP) 2023-28 has announced initiatives to boost manufacturing in India. These initiatives include the addition of the PMMITRA scheme to the EPCG scheme, exemption for the dairy sector, eligibility for reduced export obligation requirements for green technology products, self-declaration basis for the Apparel and Clothing sector, extension of the self-ratification scheme, and double weightage for Fruits and Vegetables exporters. These initiatives are expected to encourage investment, promote sustainable manufacturing practices, simplify processes, and provide support to key sectors. 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.
Initiatives to Boost Manufacturing in India: FTP 2023-28
Special One-Time Amnesty Scheme for Default in Export Obligations
The Foreign Trade Policy (FTP) 2023-28 has introduced a special one-time amnesty scheme for exporters who are unable to fulfill their export obligations against the EPCG and Advance Authorizations. This scheme provides relief to exporters and allows for one-time settlement of default in export obligation. The maximum interest payable under this scheme is capped at 100% of duties exempted, and the scheme is only applicable to cases of default due to genuine reasons. The scheme is available for a limited period until 30.09.2023.
Special One-Time Amnesty Scheme for Default in Export Obligations: FTP 2023-28
Streamlining SCOMET Licensing Procedure
The Foreign Trade Policy (FTP) 2023-28 emphasizes streamlining the licensing process for Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) to promote ease of understanding and compliance by industry. This is in line with India’s international commitments under various export control regimes. Recent policy changes aim to simplify the licensing of certain SCOMET items, making it easier for industry to obtain licenses for these items. The policy also aims to simplify policies for the export of dual-use high-end goods and technology, making India more competitive in the global market.
Streamlining SCOMET Licensing Procedure: FTP 2023-28
Future of Foreign Trade Policy
The Foreign Trade Policy 2023-28 is designed to be adaptable and responsive to the changing trade environment. It emphasizes wider engagement with states and districts to promote grassroots exports, streamlining e-commerce exports, setting sector-specific targets to achieve the one trillion-dollar merchandise export goal by 2030, creating a consultative mechanism to resolve trade issues, working towards making Indian Rupees a global currency, and restructuring the Department of Commerce for future readiness.
Conclusion
The key highlights of India’s Foreign Trade Policy 2023-28 include initiatives to simplify the approval process, reduce transaction costs, and promote international trade. The policy emphasizes the importance of e-commerce exports, manufacturing, and decentralized export promotion. These initiatives aim to improve India’s position as a leading manufacturing hub, increase foreign trade, and promote economic growth.