India’s Foreign Trade Policy 2023 aims to export USD 2 trillion by 2030

The government unveiled the Foreign Trade Policy (FTP) 2023, with the goal of increasing the country’s exports to USD 2 trillion by 2030.

In order to increase exports to USD 2 trillion by 2030, the government unveiled the Foreign Trade Policy (FTP) 2023. Director General of Foreign Trade (DGFT), Santosh Sarangi, said that the new policy is different from the previous 5-year FTP announcements in that it has no set end date and will be revised as necessary. FTP 2023, which will be put into effect on April 1, 2023, was unveiled by Commerce and Industry Minister Piyush Goyal. It places an emphasis on moving away from incentive-based approaches and towards remission and entitlement-based policies.

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Key Points of the New Foreign Trade Policy for 2023

Piyush Goyal, the minister of commerce and industry, announced the new Foreign Trade Policy (FTP) 2023, which will go into effect on April 1 of that year.

The FTP has no set end date but will be updated as necessary in order to increase India’s exports to USD 2 trillion by 2030. India’s total exports are projected to reach USD 760–770 billion by the end of the current fiscal year, up from USD 676 billion in 2021–22.

In addition to the 39 currently recognised Towns of Export Excellence (TEEs), the policy names four additional TEEs: Faridabad, Moradabad, Mirzapur, and Varanasi. The policy raises the value cap for exports made through courier services and extends FTP benefits to exports made through e-commerce.The new FTP also seeks to establish the Indian rupee as a reserve currency, offers an amnesty programme to those who violate their export obligations, and exempts the dairy industry from having to maintain an average export obligation.

Government to introduce amnesty programme for one-time settlement of export obligation defaults under Foreign Trade Policy (FTP) 2023:The Indian government has introduced an amnesty programme for the one-time settlement of export obligation defaults as part of the Foreign Trade Policy (FTP) 2023.

Holders of Advance Authorization and Export Promotion Capital Goods (EPCG) authorizations will be able to use the scheme to resolve any export obligation defaults and renew their authorizations without incurring any fines or facing any legal repercussions.Exporters who may have fallen behind on their obligations due to the COVID-19 pandemic or other factors are anticipated to benefit from this action.

Foreign Trade Policy (FTP) 2023: Four new “Towns of Export Excellence”

Under the Foreign Trade Policy (FTP) 2023, the four new towns of Faridabad, Mirzapur, Moradabad, and Varanasi have been designated as Towns of Export Excellence (TEE).

The Market Access Initiative (MAI) scheme will give these TEEs priority access to funds for export promotion, and the Export Promotion Capital Goods (EPCG) Scheme will allow them to take advantage of Common Service Provider (CSP) benefits for export fulfilment.The export of handlooms, handicrafts, and carpets—the mainstay of the economies of these towns—should increase as a result of this decision.

The 39 TEEs that are currently in existence have been chosen based on their past and potential export performance, and the new additions are anticipated to significantly boost India’s export growth.

Foreign Trade Policy (FTP) 2023: Streamlining Exports from E-Commerce.

The Foreign Trade Policy (FTP) 2023 recognises the potential of e-commerce exports and has implemented policy interventions to help this sector grow.The FTP lays out a strategy for establishing e-commerce hubs, as well as related elements such as payment reconciliation, bookkeeping, returns policy, and export entitlements. The FTP 2023 increased the consignment-wise cap on e-commerce exports via courier from 5 lakhs to 10 lakhs, which is expected to boost the exports of small and medium-sized e-commerce enterprises.

According to various estimates, e-commerce exports have the potential to reach $200 to $300 billion by 2030, and the policy measures enacted under FTP 2023 are expected to contribute to this goal.