The government introduced the Foreign Trade Policy (FTP) 2023, which aims to increase the country’s exports to USD 2 trillion by 2030. The new policy is different from the previous 5-year FTP announcements as it has no specific end date and will be revised as needed, according to the Director General of Foreign Trade (DGFT), Santosh Sarangi. Commerce and Industry Minister Piyush Goyal presented FTP 2023, which will be implemented starting from April 1, 2023, and emphasizes a shift from incentive-based approaches to remission and entitlement-based measures.
The Key Approach to the policy is based on these 4 pillars:
(i) Incentive to Remission,
(ii) Export promotion through collaboration – Exporters, States, Districts, Indian Missions,
(iii) Ease of doing business, reduction in transaction cost and e-initiatives and
(iv) Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET policy.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
As part of the Foreign Trade Policy (FTP) 2023, the Indian government has introduced an amnesty scheme for the one-time settlement of export obligation defaults.
The scheme will allow holders of Advance Authorization and Export Promotion Capital Goods (EPCG) authorizations to settle their export obligation defaults and renew their authorizations without attracting any penalties or legal action.
This move is expected to provide relief to exporters who may have defaulted on their export obligations due to the COVID-19 pandemic or other reasons.
The four new towns – Faridabad, Mirzapur, Moradabad, and Varanasi – have been identified as Towns of Export Excellence (TEE) under the Foreign Trade Policy (FTP) 2023.
These TEEs will receive priority access to export promotion funds under the Market Access Initiative (MAI) scheme and will be able to avail Common Service Provider (CSP) benefits for export fulfillment under the Export Promotion Capital Goods (EPCG) Scheme.
This move is expected to boost the exports of handlooms, handicrafts, and carpets, which are the mainstay of these towns’ economies.
The existing 39 TEEs have been identified based on their export performance and potential, and the new additions are expected to contribute significantly to India’s export growth.
The Foreign Trade Policy (FTP) 2023 recognizes the potential of e-commerce exports and has introduced policy interventions to facilitate the growth of this sector.
The FTP outlines a roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, book-keeping, returns policy, and export entitlements. The consignment-wise cap on e-commerce exports through courier has been raised from ₹5 lakhs to ₹10 lakhs in the FTP 2023, which is expected to boost the exports of small and medium-sized e-commerce enterprises.
Various estimates suggest that e-commerce exports have the potential to reach $200 to $300 billion by 2030, and the policy measures introduced under FTP 2023 are expected to help achieve this goal.
(image credit- respective producer)
You may also read these:
Find More News on the Economy Here
Chief of Defence Staff General Anil Chauhan chaired the 35th Tri-Services Commanders’ Conference (TSTCC) at…
Every year, on November 14, India celebrates Children’s Day, also known as Bal Diwas, to…
Arvindar Singh Sahney has been appointed as the new chairman of Indian Oil Corporation (IOC),…
Chief Justice of India The Chief Justice of India (CJI) is the highest-ranking judge and…
The Ministry of Home Affairs (MHA) has approved the creation of the Central Industrial Security…
GM Aravindh Chithambaram made a remarkable late surge in the final rounds, winning the last…