On March 31, 2023, in New Delhi, the New Foreign Trade Policy 2023–2028 was revealed by the Union Minister of Commerce, Industry, and Textiles Piyush Goyal.
Santosh Kumar Sarangi, director general of foreign trade, said during a speech at the introduction of the foreign trade policy that “India’s exports, which were $435 billion in 2015–16, are expected to increase by over 70% to almost $760 billion in 2022–23.
The COVID-19 pandemic and the war in Europe last year, according to Mr. Sarangi, caused the 2015–20 strategy to be prolonged. Many export marketing programs were rationalized by the policy that ends today. He added, “Exports are projected to surpass $760 to $770 billion this year.
According to Mr. Sarangi, “Importer-Exporter Codes given to specific merchants have been deduplicated after confirmation with other agencies, reducing the total number of IECs in the nation from 18 lahks to roughly 6 lahks.”
To allow for future updates as needed, we have made sure that this policy has no expiration date. According to him, the new policy takes the strategy of switching from an incentive-based system to one that remits taxes.
“There is a renewed focus on finding new growing markets, and we’re also trying to make it easier to do business to lower transaction costs for importers,” said the director general of foreign trade.
With some procedure adjustments, he said, “some of the schemes that have been successful, like advance authorization of imports and export promotion for capital goods,”
The application cost for the Advance Authorization and EPCG Schemes for MSMEs has been decreased, according to Mr. Sarangi, which will help 55% to 60% of the program’s recipients.
For the first time ever, he said, “a merchanting trade clause is being included in the policy.” “This will enable exporters from India to buy goods from other nations and ship them to other countries without ever having to set foot on Indian soil.” This will also permit the transportation of illicit products.
He declared, “All PM Mitra parks will be qualified to receive benefits as Common Services Providers under FTP 2023. We made sure that some goods could have fewer export restrictions in order to support renewable energy. To enable the clothing and textile industry to respond more quickly to market needs and fashion trends, a special advance authorization system is being introduced.
E-commerce shipments, which are anticipated to reach $200–300 billion by 2030, are now eligible for FTP advantages, according to Mr. Sarangi. A strategy will be developed to build up warehousing facility-designated zones in e-commerce export hubs.
In order to handle issues connected to commerce and industry, he concluded by saying, “A consultative mechanism is being developed.”. We are trying to make the Indian rupee a universally accepted form of payment for international trade. In order to encourage exports at the local level, the strategy also envisions a broader partnership with states and districts.
The policy no longer has a sunset provision because it will be constantly amended, according to Commerce Secretary Sunil Barthwal. India’s exports will therefore not be eclipsed.
“We’re talking about $2 trillion by 2030, if not sooner, and this plan has a very clear direction: we need to grow. We need to increase to between 7% and 10% of the worldwide market for both goods and service shipments. We shouldn’t be depressed, even though there are bleak predictions regarding global commerce. Instead of depending on subsidies, our products ought to be competitive, and we are starting to move in that direction, according to Mr. Barthwal.