Govt Unveils Foreign Trade Policy 2023 With An Aim At $2 Trillion Exports By 2030: Here Are The Key Points

According to DGFT, India is likely to cross $765 billion in merchandise and services exports in the financial year 2022-23. In 2021-22, the total exports were $676 billion

DGFT Santosh Sarangi said unlike the practice of 5-year FTPs, this dynamic and responsive trade policy is without any end date, and will be updated as per the emerging global scenario.

Source : Twitter/Anupriya Patel

Directorate General of Foreign Trade under the Ministry of Commerce and Industry on Friday launched the Foreign Trade Policy (FTP) 2023 with an aim to raise India’s exports to $2 trillion by 2023. The “dynamic and responsive” trade policy also aims to make rupee a global currency. 

Director General of Foreign Trade (DGFT) Santosh Sarangi while unveiling the policy said that, unlike the practice of 5-year FTPs, this dynamic and responsive trade policy is without any end date, and will be updated as per the emerging global scenario, reported news agency PTI. 

"We have ensured there is no end date to this policy, it will be updated from time to time," Sarangi said. 

The Foreign Trade Policy 2023 was unveiled by Commerce and Industry Minister Piyush Goyal. According to the report, Goyal said the department of commerce will be making a massive focused outreach to the world, either sectorally or country-wise, over the next 4-5 months. Ministry of External Affairs and Indian Missions abroad will work with the department.

"We have to meet our exports targets going forward. We will achieve $2 trillion in exports by 2030, but it should not be that merchandise exports are outperformed by services exports," the minister said.

According to DGFT, India is likely to cross $765 billion in merchandise and services exports in the financial year 2022-23. In 2021-22, the total exports were $676 billion.

Also present at the event, Commerce Secretary Sunil Barthwal said India is ready to trade in the rupee with countries that are facing currency failure or have dollar shortages. He said the government is focusing on strengthening the rupee payment system.

Here Are Some Salient Features Of The Foreign Trade Policy 2023

• Unlike the practice of announcing 5-year FTP, the latest policy has no end date and will be updated as and when needed. 
• The new FTP identifies four new Towns of Export Excellence (TEE) – Faridabad, Moradabad, Mirzapur, and Varanasi – in addition to the already existing 39 TEEs.
• The FTP benefits have been extended to e-commerce exports, which are estimated to grow to $200-300 billion by 2030.
• The value limit for exports through courier service is being increased from Rs 5 lakh to Rs 10 lakh per consignment.
• The FTP Introduces a scheme for the remission of duties, taxes, and government levies on export goods. 
• Under the FTP 2023, applications pertaining to foreign trade has been digitized and a system has been developed for Automatic system-based approval of FTP applications. 
• Norms for recognition as Star Trading Houses have been eased. 
• The dairy sector will be exempted from maintaining average export obligations with FTP 2023. 
• Battery electric vehicles; vertical farming equipment and green hydrogen are eligible for reduced obligation under Export Promotion Capital Goods (EPCG) scheme. 
• The value limit for exports through courier service has been increased from Rs 5 lakh to Rs 10 lakh per consignment. 
• A focus on engaging with states and districts through the districts as export hubs initiative has been proposed.  
• FTP aims at streamlining the export of dual-use items under the SCOMET policy.  
• FTP introduces an amnesty scheme for one-time settlement of default in export obligation by advance authorisation and EPCG authorisation holders. 

The Foreign Trade Policy 2015-20 ended on March 31, 2020. It was extended several times due to the pandemic and volatile geopolitical scenarios.