According to the source, the Indian government released its Foreign Trade Policy 2023 on Friday. This policy intends to increase exports by USD 2 trillion by 2030 by switching from an incentive-based system to one based on remission and entitlements.
While press briefing about the Foreign trade policy, Director General of Foreign Trade, Santosh Sarangi, said that, unlike the practice of announcing the change every 5 years, the new policy will have no end date, it will be updated whenever needed. The new Foreign Trade Policy unveiled by Commerce and Industry Minister Piyush Goyal will be effective from the new financial year, April 1, 2023.
According to the Director General of Foreign Trade, this fiscal year will end with total exports of USD 760-770 billion as against USD 676 billion in 2021-22. He further added that the policy of the last five-year came into force on April 1, 2015. However, in the wake of the coronavirus outbreak and subsequent disruptions in economic activities globally, it was extended several times. The last extension in this was given in September 2022 till March 31, 2023.
In addition to the 39 Towns of Export Excellence (TEE) now in existence, the new Foreign Trade Policy names four additional Towns of Export Excellence (TEE): Faridabad, Moradabad, Mirzapur, and Varanasi. The FTP has expanded its benefits to include e-commerce exports, which are projected to reach USD 200–300 billion in value by 2030. He claims that the per-consignment value cap for exports made via courier service has increased from Rs 5 lakh to Rs 10 lakh. The new Foreign Trade Policy aims to transform the Indian rupee and enable the settlement of commerce in the national currency. The Director General of Foreign Trade added that the Foreign Trade Policy 2023 is flexible and sensitive to changing trading conditions. He further added that the Department of Commerce is being re-organised, in order to make it future-ready.
Talking on the subject, Commerce Secretary Sunil Bhardwaj said, “If there are countries where there is currency failure or who are in shortage, we are willing to trade in with the rupee with them.” He also underlined that Indian exporters have to work globally to become competitive and avoid being dependent on subsidies.
The Foreign Trade Policy offers relief to exporters who are unable to complete their Commitments against the Export Promotion Capital Goods (EPCG) scheme and Advance Authorizations for the sake of commerce and industry and to encourage exporters. It creates a programme for a one-time payment of export obligation default by holders of advance authorizations and Export Promotion Capital Goods (EPCG) authorizations.
According to the plan, all open cases of failure to fulfil EO can be resolved by paying the waived customs charges as well as the interest calculated at a rate equal to 100 percent of the waived duties. The Foreign Trade Policy intends to simplify the Special Chemicals, Organisms, Minerals, Equipment and Technology export regulations (SCOMET).
The new policy is everlasting as opposed to being valid for only five years, which will increase policy continuity. The world economy is currently experiencing a substantial slowdown, and recessions and inflation are serious challenges to growth, so the export targets for the next two to three years are on the optimistic side. Export promotion programmes should be digitised since it will cut down on paperwork and bureaucracy. It will reduce the threshold for exporter recognition is a wise move. And, an improved focus on manufacturing exports is a positive move for India, which has to become more competitive.
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