Government's New Foreign Trade Policy Seeks To Advance Exports From $770 Billion To $2 Trillion
The government unveiled a "dynamic and flexible" foreign trade strategy (FTP) on Friday, outlining strategies to increase India's exports from as much as $770 billion in the current fiscal year to $2 trillion by 2030.
FTP 2023 places a strong emphasis on making doing business simple, streamlining procedures to cut down on transaction costs, focusing more on e-commerce exports, and enlisting district- and state-level actors to boost outbound shipments.
The initiative also aims to promote bilateral trade in Indian rupees, positioning it as a substitute for dollars for developing nations that are having trouble with their currencies.
The new policy that will go into effect on April 1 does not contain any brand-new, big-bang fiscal incentives.
The WTO-compliant RoDTEP (Refund of Duties and Taxes on Exported Products) and RoSCTL tax and duty remission programmes will provide assistance to exporters (Rebate of State and Central Taxes and Levies).
Up until September 30, an unique one-time amnesty programme for violating export obligations will be made accessible, allowing exporters to make amends for violations of the advance authorization and EPCG (Export Promotion Capital Goods) schemes.
Under to certain restrictions, the FTP permits "merchanting trade," which often entails the shipment of products from one foreign country to another without entering Indian ports.
This will motivate intermediaries from India to seize important export opportunities in and around regional trade hubs like Singapore and Hong Kong.
Commerce and industry minister Piyush Goyal said India's exports may hit $765-770 billion this fiscal year, higher than the initial $750 billion target.
"Grassroots-led export promotion is a big priority as the FTP 2023 provides a major thrust to strengthen India's growing stature in global trade," Goyal said.
Departing from the earlier five-year trade policies, the commerce and industry ministry has instead announced an open-ended "dynamic" policy that will be updated as required, given the fast-shifting glob