The Indian government finally released its new foreign trade policy on 31st March 2023. This policy is introduced with the motive to boost Indian exports after the slowdown in global trade due to the covid-19 pandemic. The new foreign trade policy of India mainly focuses on the globalization of trade in rupees.
India’s new trade policy will be implemented from 1st April 2023. The new policy has been released with the motive of expanding Indian exports to almost $2 trillion in the next 7 years i.e.; 2023. The new Indian Foreign Trade Policy is expected to be in action until 2028 as mentioned by the Directorate General of Foreign Trade (DGFT). The directorate also stated that as of now no end date has been finalized for this new foreign trade policy. The end date will be updated whenever it seems necessary.
The last FTP 2015-20 recorded the highest number of Indian exports. Therefore, India aims to surpass the record of $760 billion in the financial year 2022-23 in terms of its exports.
The Indian government had undertaken foreign policy changes back in 2015. No official announcement was made by the government about policy changes, but they were planning for a new trade policy keeping in mind the current global scenario.
Foreign Trade Policy 2023 was launched by Shri Piyush Goyal, the Union Minister of Commerce and Industry, Commoner Affairs, Food & Public Distribution, and Textiles. He said that unlike the previous 5-year plan FTPs, the new FTP 2023 is designed as a dynamic and open-ended policy that will help to fulfill all the emerging trade requirements.
FTP 2023 seeks to gain a lot of feedback from the exporters and other people related to the trade & commerce industry to streamline the trade process of the country. It aims to collect advice from the trade industry for updating India’s trade policies. During the FTP 2023 release, Indian Commerce Secretary Sunil Barthwal said that it is time for Indian exporters to become globally competitive and must stop relying on subsidies.
Approaches of the new Foreign Trade Policy 2023
- FTP 2023 focuses on trade elements starting from Incentives to Tax Remission
- The new trade policy aims for greater trade facilitation through technology, automation, and the continuous process of re-engineering.
- It covers the promotion of exports through collaborations with exporters, districts, and states’ export promotion committees.
- It will focus on various emerging trade areas such as e-commerce exports, transforming districts as export hubs, and streamlining SCOMET policy.
With the introduction of FTP 2023, various changes are going to be seen in the Indian export industry.
Here are the key FTP 2023 Highlights that have been issued by the Indian government to promote Indian exports on the global market.
The much-awaited Foreign Trade Policy broke on 31st March 2023. It changed the tradition of the FTP lasting for five years. This time the FTP has been planned with a long-term focus.