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Saturday, June 3, 2023

Center presents new foreign trade policy, targets exports of $2 trillion by 2030

NEW DELHI: The government published on Friday the foreign trade policy (FTP) 2023 with the goal of boosting India’s exports to $2 trillion by 2030.
Trade and Industry Minister Piyush Goyal unveiled the policy, which will take effect on April 1, 2023. “We have to meet our export targets going forward,” Piyush Goyal told a briefing on Friday. . “We will reach $2 trillion in exports by 2030, but we must ensure that merchandise exports do not lag behind service exports.”
While officials have talked in the past about achieving $2 trillion in exports of goods and services, this is the first time it has become a policy. This comes as India chairs the Group of 20 countries this year and the government of Prime Minister Narendra Modi has been touting the nation’s potential to become the world’s fastest-growing major economy in the next three years.
The new policy moves away from incentives to a referral and entitlement based regime. Unlike previous policies that were announced five years ago, FTP 2023 has no end date and will be updated as needed.
The new policy designates four new Export Excellence Towns (TEEs) – Faridabad, Moradabad, Mirzapur and Varanasi – in addition to the existing 39 TEEs.
E-commerce exports, estimated to grow to $200-300 billion by 2030, will now benefit from FTP. The value limit for exports via the courier service is raised from Rs 5 lakh to Rs 10 lakh per consignment. Furthermore, the new policy aims to make the Indian rupee a global currency and allow the settlement of international trade in the national currency.
India ready for rupee trade with countries facing currency crises: Commerce Secretary
Commerce Secretary Sunil Barthwal said on Friday that India is ready to trade in Indian rupees with countries facing currency failure or dollar shortages.
Speaking after the presentation of the Foreign Trade Policy (FTP) 2023, the secretary also said that the government is focusing on strengthening the rupee payment system.
Changes have been made to the FTP to allow for the settlement of international trade in Indian rupees with a view to converting the INR to a global currency.
Highlights of the Foreign Trade Policy 2023
* Unlike 5-year policies, FTP 2023 does not have an end date and will be modified as needed
* FTP to provide policy continuity and a responsive framework
* FTP Focus: From Incentive to Referral
* Introduces a scheme for the remission of government duties, taxes and levies on export goods
* Digitization of applications belonging to FTP
* Automatic approval system based on FTP applications
* Pilot introduced to reduce processing of advance authorization related requests to 1 day
* The rules for recognition as Star Trading Houses have been relaxed
* Promotes trade in Indian rupee
* Introduces provisions for commercial trade
* Faridabad, Moradabad, Mirzapur and Varanasi designated new Cities of Excellence in Exports
* Dairy sector will be exempt from maintaining average export obligation * Battery electric vehicles; vertical farm equipment and green hydrogen eligible for a reduced obligation under the Export Promotion Capital Goods (EPCG) scheme
* Special prior authorization regime extended for the clothing and apparel sector
* Extends all the benefits of FTP to eCommerce exports
* The value limit for exports via courier increased from Rs 5 lakh to Rs 10 lakh per shipment
* Focus on engaging with states and districts through the Districts as Export Hubs initiative
* Its objective is to expedite the export of dual-use items under the SCOMET policy
* Introduces an amnesty plan for the single liquidation of non-compliance with the export obligation by holders of prior authorization and EPCG authorization
* FTP to be dynamic and responsive to the emerging business scenario
* Restructuring of the Department of Commerce on the anvil so that it is prepared for the future.
(With contributions from agencies)

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