The Ministry of Commerce and Industry recently announced the Foreign Trade Policy (FTP) 2023, aiming to boost India’s exports and integrate the country deeper into global value chains. The policy outlines several measures to promote exports and facilitate ease of doing business for traders and exporters.
India’s Foreign Trade Policy (FTP) 2023 (dated 31/03/2023)
Dynamic and Responsive Approach
The FTP 2023 is designed as an open-ended and dynamic policy that can accommodate emerging needs. It focuses on continuous feedback and revisions based on inputs from industry stakeholders. The policy emphasizes export promotion through collaboration between exporters, states, districts and Indian missions abroad.
Target of $2 Trillion Exports by 2030
The FTP 2023 seeks to take India’s exports to $2 trillion by 2030, in line with Prime Minister Modi’s vision to increase exports manifold. India’s overall exports have already crossed $750 billion in FY 2022 and are expected to surpass $760 billion.
4 Key Pillars of FTP 2023
The FTP 2023 is based on 4 main pillars:
i) Incentives to Remissions: Moving from incentives to remissions and facilitation
ii) Export Promotion through Collaboration: Between exporters, states, districts and Indian missions
iii) Ease of Doing Business: Process re-engineering, cost reduction and paperless procedures
iv) Emerging Areas: Focus on e-commerce exports, SCOMET exports and integrating districts
Process Re-engineering and Automation
The policy focuses on minimal physical interface between exporters and officials through process automation. Scheme benefits will be given through IT systems and identified risk-based checks. This will reduce transaction costs and time for exporters.
Boosting Exports from Districts
The FTP introduces State and District Export Promotion Committees to develop district-specific export promotion strategies. Additional towns have been added under the Towns of Export Excellence scheme to facilitate exports of products like handicrafts and handlooms.
Promoting E-Commerce Exports
With the potential to reach $300 billion by 2030, specific provisions have been introduced to boost e-commerce exports. This includes raising the export shipment value limit from ₹5 lakh to ₹10 lakh per consignment.
Amnesty Scheme
A one-time amnesty scheme has been introduced to provide relief to exporters who defaulted on export obligations. Exporters can pay exempted duties to regularize pending cases. Interest payable is capped at 100% of exempted duty.
Changes in EPCG and Advance Authorization Schemes
The popular EPCG and Advance Authorization schemes have been further streamlined. New sectors like textiles, dairy and electric vehicles have been given additional benefits under these schemes. The FTP 2023 introduces several measures in line with the vision of boosting India’s exports. The focus on automation, collaboration and easing processes will enhance the competitiveness of Indian exporters in global markets.
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Ease of Doing Business (Key Highlights FTP 2023)
Export Promotion Initiatives (Key Highlights FTP 2023)
Districts as Export Hubs Initiative (Key Highlights FTP 2023)
Boost for India’s E-Commerce Exports (Key Highlights FTP 2023)
Boost for Manufacturing in India (Key Highlights FTP 2023)
Special Amnesty Scheme for Default in Export Obligations (Key Highlights FTP 2023)