Union Commerce Minister Piyush Goyal has unveiled the India’s new Foreign Trade Policy (FTP) for 2023-28. This policy aims to bolster India’s exports and emphasizes the internationalization of trade in rupees. With no end date set, the policy will be updated continuously, reflecting its dynamic nature and long-term focus.
Projected Growth: India’s Total Exports to Surpass US$ 760 Billion in FY 2022-23
India’s total exports for the financial year 2022-23 are expected to surpass US$ 760 billion. This significant growth is partly attributed to the existing vision ary approach of the Government of India carried over in the new FTP 2023, which encourages e-commerce exports, expected to reach US$ 200-300 billion by 2023.
Key Features of FTP 2023: Encouraging E-commerce Exports and Introducing Amnesty Scheme
The FTP 2023 introduces an amnesty scheme for a one-time settlement of default in export obligation. The dairy sector has been exempted from maintaining average export obligation, and a special advance authorization scheme has been extended to the apparel and clothing sectors.
To further boost exports, the value limit for exports through courier services has been increased to Rs 10 lakh from Rs 5 lakh per consignment.
Long-term Ambition: India Aims for US$ 2 Trillion in Exports by 2030
India has set an ambitious goal of reaching $2 trillion in exports by 2030. The new FTP 2023-28 focuses on the internationalization of trade in rupees to help achieve this target.
Continuous Updates: No End Date for the FTP Policy
The FTP 2023-28 does not have an end date or target date, which means it will be continuously updated to address the ever-evolving needs of India’s export industry. This dynamic policy will move from incentives to a remission regime, addressing the concerns of stakeholders through a consultative mechanism.
Towns of Export Excellence: Faridabad, Moradabad, Mirzapur, and Varanasi
The Commerce Ministry has declared Faridabad, Moradabad, Mirzapur, and Varanasi as towns of export excellence. These towns will play a vital role in boosting overall exports, which are expected to reach $770 billion in FY23.
Global Trade Challenges: Supply Chain Disruptions and Slowdown
India’s trade has been impacted by supply chain disruptions and a slowdown in global trade due to the ongoing Russia-Ukraine war. The previous foreign trade policy, which ended in March 2020, was extended due to the Covid-19 outbreak. However, the new FTP 2023-28 aims to tackle these challenges by focusing on export promotion through collaboration with exporters, states, districts, and Indian Missions. The policy also aims to promote ease of doing business and focus on emerging areas like e-commerce and export hubs.
In conclusion, India’s new Foreign Trade Policy 2023-28 focuses on the internationalization of trade in rupees, as stated by Union Commerce Minister Piyush Goyal. With no end date set, the policy will be updated continuously, ensuring it remains relevant and supportive of India’s export industry. The ambitious goal of reaching $2 trillion in exports by 2030 is a testament to India’s commitment to expanding its global trade footprint.
Key Highlights: India’s Foreign Trade Policy (FTP) 2023-28
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Validity of ‘FTP’ and ‘HBP’ 2015-2020 further Extended upto 31/03/2023
When it mentions FTP 2023-28, the new policy statement of not having any target date or end date for ‘India’s FTP’ is self-contradictory!