The Foreign Trade Policy (FTP) 2023 was blazoned by the Union Minister of Commerce and Industry. It came into effect on April 1, 2023. FTP 2023 is a policy document which is predicated on continuity of time tested schemes easing exports as well as a document which is responsive to the conditions of trade. The salient features unleashed by this policy will be- Target 2 trillion exports by 2030, continuous and responsive frame with no end date, making rupee a global currency, and making India a trade mecca. The need for a new FTP can’t be over emphasized given the recent geopolitical developments, the thrust on original manufacturing and a direction on bilateral trade conventions.The policy will be dynamic. There is no end date to ensure that the policy can be revised as and when needed.The approach to the new FTP 2023 policy is said to be predicated on four pillars, which are (a) Shift from incentives to absolution (b) Export creation through collaboration – Exporters, States, sections, Indian Missions (c) Ease of doing business, reduction in transaction cost and digitisation and (d) Support to arising areas analogous as E-Commerce, developing sections as Export capitals and streamlining SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) policy.
The benefits of FTP 2023 have been extended to commerce exports, which are expected to reach 200-300 billion US dollars by 2030.The policy aims to encourage e-commerce exports, by raising the value limit for exports via courier service from Rs 5 lakh to Rs 10 lakh per shipment. A remittal plot for one-time understanding of default in send out commitment has likewise been presented. With addition of Varanasi, Moradabad, Faridabad, and Mirzapur, 43 towns have been designated as cities of export excellence. In addition, the new FTP aims to make the Indian rupee a global currency and permit international trade agreements to be settled in Indian rupees. According to the Directorate General of Foreign Trade (DGFT), exports of goods and services are expected to reach $ 760 billion in FY23, up from $ 676 billion in FY22
The last foreign trade policy conspicuous counter accusations are: Impact on Export acquainted Businesses - Another reason for catching the FTP is some export- acquainted businesses have been negatively impacted by certain ad hoc, mistimed, and antithetical changes to the 2015 FTP- The 2015 FTP incentivised exports by issuing duty- credit scrips directly in proportion to exports. Still, in 2020 the government limited the maximum import incentives for goods to Rs. 20 million, and in 2021, limited them to Rs. 20 million for services. Also, the changes for service incentives were retrospectively notified in September 2021 to be applied from April 2019. Reduction in expenses and Incentives - The periodic import incentives the Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) of Rs.51012 crore were replaced with the RoDTEP ( Remission of Duties or Taxes on Export Products Scheme). scheme incitement of Rs.12,454 crore. The remaining Rs.38,558 crore has been diverted into PLI to give benefit to subsidiaries of many sectors. Also, before there was a 3% import incitement on husbandry tools like tractors, which has been reduced to 0.7%. Crisis of MSMEs - With a donation of about 29% to the GDP and 40% to international trade, MSMEs are the crucial players in achieving the ambitious import targets. Still, the swell in input and energy costs are hitting the bottom lines of MSMEs.
The policy 2023 emphasizes import creation and development, moving down from an incitement governance to a governance which is easing, grounded on technology interface and principles of collaboration. Reduction in figure structures and IT- grounded schemes will make it easier for MSMEs (Micro, Small & Medium Enterprises) and others to pierce import benefits.
Duty exemption schemes for import product will now be enforced through Regional Offices in a rule- grounded IT system terrain, barring the need for a homemade interface. Special emphasis will be given to exporters as Exporter enterprises honored with' status' grounded on export performance will now be partners in capacity-structured enterprise on a best- endeavors basis. Similar to the 'each one teach one' action, 2- star and above status holders would be encouraged to provide trade-affiliated training grounded on a model class to interested individuals. Status recognition norms have been re-calibrated and reframed to enable further exporting enterprises to achieve 4 and 5- star ratings, leading to some better branding openings in export market standing to have a better network
The FTP 2023 aims to create an appropriate policy framework to transform the nation into a centre for international trade, and as a result, it allows the transfer of payloads of goods from one foreign country to another without entering Indian ports and using an Indian mediator, with the exception of those listed in CITES ( the Convention on International Trade in Endangered Species of Wild Fauna and Flora) and SCOMET (Special Chemicals, Organism, Materials, Equipment and Technologies )
This will enable certain places in India, like GIFT (Gujarat International Finance Tec-City) etc., to be significant capitals for merchanting trade, like Dubai, Singapore, and Hong Kong. This will also, in turn, boost the manufacturing sector in India.
In conclusion, India’s new Foreign Trade Policy 2023- 28 focuses on the internationalization of trade in rupees, as stated by Indian Union Commerce Minister Piyush Goyal. With no end date set, the policy will be streamlined continuously, icing it remains relevant and probative of India’s export industry. The ambitious goal of reaching a mark of $ 2 trillion in exports by 2030 is a testament to India’s commitment to expanding its global trade footmark. If the government stays vigilant and updates the FTP, responding to the needs of exporters, it could play a crucial role in helping meet the $2 trillion export target. To enhance the competitiveness of Indian exports in the global market, to promote sustainable development of the country’s trade sector, to Make India a leader in specific sectors such as pharmaceuticals, engineering goods, and textiles, promote a digital economy and leverage technology and to enhance the competitiveness of Indian exports, FTP 2023 can act as a catalyst for the Indian Economy.