Foreign Trade Policy 2023

Foreign Trade Policy 2023

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal  launched the Foreign Trade Policy 2023 saying that it is dynamic and has been kept open ended to accommodate the emerging needs of the time. He stated that the policy had been under discussion for a long time and has been formulated after multiple stakeholder consultations. India’s overall exports, including services and merchandise exports, has already crossed US$ 750 Billion and is expected to cross US$ 760 Billion this year.

Foreign Trade Policy (2023) PDF is a policy document which is based on continuity of time-tested schemes facilitating exports as well as a document which is nimble and responsive to the requirements of trade. It is based on principles of ‘trust’ and ‘partnership’ with exporters. In the FTP 2015-20, changes were done subsequent to the initial release even without announcement of a new FTP responding dynamically to the emerging situations.Hereafter, the revisions of the FTP shall be done as and when required.Incorporating feedback from Trade and Industry would also be continuous to streamline processes and update FTP, from time to time.

Foreign Trade Policy 2023 – Key Approach

• The incentive to Remission,
• Export promotion through collaboration – Exporters, States, Districts, Indian Missions,
• Ease of doing business, reduction in transaction cost and e-initiatives and
• Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET policy

New Foreign Trade Policy 2023

• Policy changes were being undertaken since 2015 even without announcement of a new FTP responding dynamically to the emerging situations.
• The Foreign Trade Policy 2023 is being announced to provide the policy continuity and a responsive framework.
• Subsequent revision(s) in the FTP shall be done as and when required and shall not linked to any date.
• Continous feedback from Trade and Industry to streamline processes and update Policy & procedures.

New FTP Approach:

• From Incentives to Tax Remission
• Greater Trade facilitation through technology, automation, and continuous process re-engineering
• Export promotion through collaboration: Exporters, States, Districts
• Focus on Emerging Areas – ECommerce Exports, Developing Districts as Export Hubs, Streamlining SCOMET policy et al.

Key FTP Highlights:

1. Ease of doing business, reduction in transaction cost and e-initiatives
2. Export promotion initiatives
3. Districts as Export Hubs initiative
4. E-Commerce Exports
5. Steps to Boost Manufacturing
6. Special one-time Amnesty Scheme for default in Export Obligations
7. Emphasis on streamlining SCOMET Licensing Procedure

Way Forward:

• Foreign Trade Policy to be dynamic and responsive to the emerging trade scenario.
• Wider Engagement with States and Districts to promote exports from the grassroots.
• Focus on E-commerce exports to streamline processes and make it easier for exports to grow in e-commerce space.
• Sector specific targets to achieve the goal of a one trillion-dollar merchandise exports by 2030.
• Consultative mechanism to resolve issues of trade and Industry.
• Work towards making Indian Rupees a global currency and facilitating International Trade settlement in INR.
• Restructuring of Department of Commerce to make it future ready.

You can download the Foreign Trade Policy 2023 PDF using the link given below.