The new foreign trade policy 2023 for India has come into full action on 1st of April this year. It was introduced by Piyush Goyal on 31/03/23. This new FTP of the country has been introduced with the major motive of boosting India’s export goods in the international markets.
The Covid-19 global pandemic had a major impact on the Indian import-export industry. It had witnessed a major slowdown due to the two continuous years of lockdown. Therefore, the new foreign trade policy 2023 puts major attention to boosting more and more export of Indian goods in the international markets.
We can say that 2023 might be India’s golden year. The present situation of the global market has opened up a lot of opportunities for our country to play its role as a major import-export player in the world. But, what does the Foreign Trade Policy 2023 hold for Indian traders? Let us know about the FTP 2023 through this post.
India’s New Foreign Trade Policy – What are its key points that you must be aware of?
The Indian Ministry of Commerce and Industry along with DGFT has introduced the new Foreign Trade Policy on 31st March 2023. The new trade policy came into action on 1st April 2023. The major motive that this policy focuses on is the internationalisation of the Indian rupee. It promotes export and import in Indian rupees.
It has been mentioned that this policy has no end date. Unlike the previous 5-year policy plan, this FTP is a dynamic policy. During the release of this policy, Santosh Sarangi, Directorate General of Foreign Trade (DGFT) put a major highlight on the important points that it holds for the Indian traders.
What are the key points included in India’s new Foreign Trade Policy?
Here, in this post, we are discussing the key points that are mentioned in the new trade policy of India 2023.
Special one-time Amnesty Scheme
The FTP 2023 has introduced an extremely new one-time Amnesty Scheme for Indian exporters. This is for the one-time settlement of default cases in export obligation (EO) for EPCG and Advance Authorization holders. The major goal of this one-time scheme is to offer great relief to the exporters who were not able to fulfill their export obligation (EO) within the given time period.
It has been mentioned that this scheme will enable Indian traders to close all their pending authorizations and restart new ones. However, the one-time Amnesty scheme is available for a limited time period. It is applicable only till 30th September 2023. Also, exporters are eligible to enjoy the benefits of this Amnesty Scheme only if the export obligation has faced a default due to genuine reasons.
Initiatives are to be taken by the Indian Government to boost manufacturing
The foreign trade policy 2023 aims to boost manufacturing so that Indian exports can see growth in the global market. Various initiatives have been introduced by the Government of India to support the manufacturing sector.
The FTP 2023 includes the PM Mitra Scheme. Through this scheme, Indian exporters will be able to claim a lot of additional benefits under the CSP of the EPCG scheme.
This policy has also implemented the extension of the Advanced Authorization (AA) for the Indian garment and clothing industry. Moreover, it has provided relief to the dairy industry of the country from maintaining the average export obligation (EO).
Increase e-commerce exports
With the introduction of the new FTP 2023, the government has put major attention to the e-commerce industry of the country. The government of India along with DGFT is willing to increase e-commerce exports in the coming years. Various e-commerce guidelines for the same are being drafted by the ministry. Exporters dealing with e-commerce will be eligible to avail of the foreign trade policy benefits.
The Indian government also has plans to set up major e-commerce export hubs in different places in the country. They are likely to establish all the facilities required for e-commerce exports.
Export promotion initiatives
There are various new export promotion initiatives taken by the DGFT with the guidance of the ministry. It has been mentioned that there will be a major relaxation for the threshold performances on exporters recognition via status holders. This new foreign trade policy has minimized the threshold required for exporters to gain the status of Star House. This will enable Indian traders to enjoy the benefit of export transaction cost reduction.
The government of India also aims to conduct foreign trade with the Indian rupee. Therefore, India’s new foreign trade policy focuses on the internalisation of the rupee.
Emerging of districts as export hubs in the country
With the introduction of the new FTP, a lot of districts in India are going to be established as major export hubs in the country. There will be programs to figure out the products and goods located in various places within the country. After the identification, these districts will be converted into major export hubs. Moreover, this policy will also make the districts and states emerge as stakeholders.
Businesses made easy, e-initiatives, and reduction in transaction cost
Foreign Trade Policy plans to cover them all.
The new foreign trade policy has implemented a single-day application to fulfill the requirements of processing extension and revalidating the trade applications.
This new foreign trade policy has also brought along the system of paperless and digital applications. Also, an automated system-based trade approval has been introduced to make the process of import-export a bit easier for the traders.
The new FTP plans to streamline the SCOMET Policy
India’s new Foreign Trade policy has focused on streamlining the SCOMET policy. The SCOMET policy is an initiative introduced by the Government of India that has been specifically designed for exporting various dual-use elements which include special chemicals, organisms, materials, equipment, and technology.
Conclusion
Here, we have mentioned all the key points that are to be implemented by the new Foreign Trade Policy in 2023. These initiatives are being taken by the Indian government to enhance the competitiveness of our Indian traders and boost Indian exports in the global market. The new foreign trade policy of India is a unique and dynamic policy that has been introduced with the motive to embrace India’s exports and make it have a major impact in the Indian economy in the coming years.
