On Friday, the Indian government announced the release of its Foreign Trade Policy (FTP) 2023, which aims to increase the country’s exports to $2 trillion by 2030. The new policy will replace the previous five-year FTP model and will not have a fixed end date, allowing for updates as necessary. Director General of Foreign Trade (DGFT) Santosh Sarangi spoke about the new policy and said that it will shift from incentive-based schemes to remission and entitlement-based schemes.
The current fiscal year is expected to end with total exports of $760-770 billion, compared to $676 billion in 2021-22, according to Sarangi. The previous five-year FTP model was introduced in April 2015 and had been extended multiple times due to the global economic disruptions caused by the COVID-19 pandemic. The most recent extension was granted in September 2022 and will remain in effect until March 31, 2023.
The new FTP includes the identification of four new Towns of Export Excellence (TEE), which are Faridabad, Moradabad, Mirzapur, and Varanasi. Additionally, e-commerce exports have been granted FTP benefits, and the value limit for exports through courier service has been increased from Rs 5 lakh to Rs 10 lakh per consignment.
Another significant aspect of the FTP 2023 is the goal of making the Indian rupee a global currency and allowing international trade settlements in the domestic currency. The DGFT stated that the new policy is dynamic and responsive to emerging trade scenarios and that the department of commerce is being restructured to make it “future-ready.”
In conclusion, the FTP 2023 aims to boost India’s exports to $2 trillion by 2030 and replace the previous five-year FTP model. The new policy includes updated schemes and incentives, the identification of new TEEs, the extension of FTP benefits to e-commerce exports, and an increase in the value limit for exports through courier services. The policy also seeks to make the Indian rupee a global currency and allow international trade settlements in the domestic currency.
