On 31st March 2023, The Ministry of Commerce and Industry(MoC&I), Government of India(GoI), released the Foreign Trade Policy (FTP) 2023 which aims to increase India’s exports to USD 2 trillion by 2030 by shifting from incentives to remission and entitlement based regime.
- Union Minister Piyush Goyal, (MoC&I) released the FTP 2023 during an event held in New Delhi, Delhi.
- The FTP 2023 is set to become effective from 1st April 2023.
- India is set to end the FY 2023 with a total export of USD 760-770 billion compared to the USD 676 billion in 2021-2022.
Key People:
Anupriya Patel, Ministers of State(MoS), MOC&I, Commerce Secretary Sunil Barthwal and Santosh Sarangi, Director General of Foreign Trade (DGFT) were present during the release of FTP 2023.
Abut FTP 2023:
Unlike the usual 5 year-FTP, the FTP 2023 does not have an end date and it will be updated as and when needed.
- The previous FTP came into force on 1st April 2015 and was later extended in the wake of COVID-19 pandemic and the subsequent disruption in economic activities.
- The last extension was given in September 2022 till 31st March 2023.
Highlights:
i.The FTP 2023 has identified 4 new Towns of Export Excellence (TEE) – Faridabad, Moradabad, Mirzapur, and Varanasi – in addition to the existing 39 TEEs.
ii.The benefits of FTP has been extended to e-commerce exports, which are expected to grow to USD 200-300 billion by 2030.
iii.The value limit for exports through courier service is being increased from Rs 5 lakh to Rs 10 lakh per consignment.
iv.The FTP 2023 has ensured fee reduction for Micro, Small & Medium Enterprises (MSMEs).
v.The FTP 2023 aims to make Indian Rupee a global currency and allow international trade settlement in the domestic currency.
vi.FTP 2023 will offer policy continuity and a responsive policy framework for promoting India’s Exports of Goods and Services.
vii.FTP 2023 has also introduced an amnesty scheme for one-time settlement of default in export obligation.
About Ministry of Commerce and Industry(MoC&I):
Union Minister– Piyush Goyal(Rajya Sabha- Maharashtra)
Minister of State(MoS)- Som Parkash (Constituency- Hoshiarpur, Punjab) and Anupriya Patel(Constituency- Mirzapur, Uttar Pradesh)
