The new foreign trade policy 2023, announced recently outlines the vision to take India’s goods and services exports to $2 trillion by 2030.
The Foreign Trade Policy 2023 of India is a major milestone in not only the foreign affairs of India but also in the dynamicity of Indian economics. The latest FTP mitigates sunset clauses that were till now a part of almost all major FTPs followed in India.
Foreign Trade Policy (FTP) plays a crucial role in a country’s economic growth and development. In India, the government has been announcing the FTP every five years, with the latest policy set to be introduced in 2023. The Union Ministry believes that India needs a strong boost and the new FTP is expected to bring significant changes and reforms to the Indian economy, with a focus on enhancing exports, reducing imports, and boosting the overall growth of the country’s economy.
Shri Piyush Goyal, the Union Minister of Commerce & Industry highlighted that the target of the new FTP of India is to cater to the emerging commercial needs of the country and to make the financial fabric more dynamic.
Salient Features of the New Foreign Trade Policy
The new FTP is expected to focus on several key areas, including:
Digitalization and E-commerce:
The new policy is expected to place a significant emphasis on the digitalization of trade processes and the promotion of e-commerce. The government aims to make it easier for businesses to conduct transactions digitally, and to simplify the documentation and customs clearance processes for exporters and importers.
Globalization of the Rupee:
The new FTP is all set to make the Indian Rupee a global currency. International trades will now be settled in the domestic currency – Indian Rupees. According to the FTP, India is even equipped to trade in Rupees with countries that suffer from dollar shortages or currency failures.
Export Promotion Schemes:
FTP 2023 is expected to provide greater support and incentives to exporters, including the introduction of various new export promotion schemes. The government is expected to provide financial assistance and tax incentives to exporters and to promote the development of export-oriented industries in the country.
Focused Approach to Services Sector:
The services sector is a key area of focus in the new FTP. The government is expected to introduce measures to promote the export of services, including the development of specialized export zones for services and the provision of incentives to service exporters.
Review of Tariff and Non-tariff Measures:
The new policy is expected to review and rationalize the existing tariff and non-tariff measures, with a view to reducing barriers to trade and promoting exports. The government is expected to introduce measures to simplify the tariff structure and reduce the number of non-tariff barriers, such as licensing requirements and technical standards.
Challenges and Opportunities:
The new FTP presents several opportunities for the Indian economy, including increased exports, higher economic growth, and job creation. However, there are also several challenges that the government will need to address, including infrastructural bottlenecks, trade deficit and global competition.
The new Foreign Trade Policy is expected to bring significant changes and reforms to the existing Indian economical fabric, with a focus on enhancing exports, reducing imports, and boosting the overall growth of the country’s economy. The policy presents several opportunities for the Indian economy, but the government will need to address the challenges facing the country, including infrastructure bottlenecks, trade deficits, and global competition, to fully realize the potential of the new FTP. (https://www.dgft.gov.in/CP/).
For more in-detail information, please find the report here.