The Indian government has announced a slew of measures under the new Foreign Trade Policy 2023 to boost exports and integrate domestic manufacturing with global value chains. From incentives for technology upgradation to support for key sectors like textiles and agriculture, the policy aims to improve India’s export competitiveness. Here are some of the key highlights:
Support for Textiles and Apparel Sector
i) The Prime Minister Mega Integrated Textile Region and Apparel Parks (PM MITRA) scheme has been added to the list of schemes eligible for benefits under the Common Service Provider (CSP) scheme of the Export Promotion Capital Goods (EPCG) scheme. This will support the establishment of textile parks.
ii) Special advance authorization scheme extended to apparel and clothing sector to facilitate prompt execution of export orders. Input-output norms will be fixed within a defined timeframe.
Incentives for Technology Upgradation
i) Dairy sector exempted from maintaining average export obligation to support technology upgradation.
ii) New green technology products like electric vehicles, vertical farming equipment, wastewater treatment systems, etc. eligible for reduced export obligation under EPCG scheme.
Boost for Manufacturing Sector
i) Self-ratification scheme for fixing input-output norms extended to 2-star and above exporters, in addition to authorized economic operators. This will help manufacturing exporters.
ii) Double weightage for fruits and vegetables exporters under status holder certification to encourage agri-exports.
i) Relaxed export obligation for dairy sector to upgrade technology.
ii) Swift customs clearance for authorized economic operators and 2-star+ exporters under self-ratification scheme.
The Foreign Trade Policy 2023 indicates the government’s strategic focus on making India a manufacturing and exporting powerhouse. The measures announced will go a long way in helping Indian businesses tap into global markets and supply chains. With the right policy support, India can achieve its ambitious export targets and emerge as a global manufacturing hub.