The Indian government has announced a new Foreign Trade Policy (FTP) 2023 to boost exports and make it easier for Indian exporters to conduct business. The policy, unveiled by Union Commerce, Industry and Textiles Minister Piyush Goyal, aims to triple India’s goods and services exports to $2 trillion by 2030, from the current estimated value of $760 billion in 2022-23. The new policy moves away from offering incentives to exporters and instead focuses on reducing costs and timelines for processing applications. This will be achieved by digitising applications and lowering transaction costs for exporters, making it easier and more efficient to conduct business.

 

The FTP 2023 also includes a one-time amnesty scheme for exporters who have not been able to fulfil their obligations under the existing advance authorisation and export promotion capital goods (EPCG) schemes. This initiative will help exporters in the short term and give them the opportunity to fulfil their export obligations.

 

Another key feature of the policy is the introduction of a new area of potential exports. Exporters will be able to source goods from another country and send them to a third country without touching Indian shores, enabling the export of restricted goods. The policy also includes initiatives to drive international trade settlement in the Indian Rupee (INR), which will boost India’s economy and help Indian businesses become more competitive in the global market.

 

To boost the clothing and apparel sector, the government has announced a special advance authorisation scheme to help them react to market demands and fashion trends faster. The government has also identified four towns in Uttar Pradesh as centres of export excellence for their performance in the apparel, handicrafts, handmade carpets and handlooms respectively. The new trade policy will make all PM Mitra textile parks eligible to get benefits as common services providers.

 

The new Foreign Trade Policy 2023 is a positive step for the Indian government as it will make exports easier for Indian exporters and help them increase their global share in merchandise and services exports. The policy will also create more jobs and boost India’s economy. Reference source: TH

 

UPSC Main Exam Question

 

Discuss the features and objectives of the Foreign Trade Policy 2023 announced by the Union Commerce, Industry and Textiles Minister Piyush Goyal.

 

Answer: The Foreign Trade Policy 2023 announced by the Union Commerce, Industry and Textiles Minister Piyush Goyal aims to make exports easier for Indian exporters and increase India's global share in merchandise and services exports. The following are the key features and objectives of the policy:

 

1. Focus on reducing costs and timelines: The policy moves away from providing incentives to exporters and instead focuses on reducing costs and timelines for processing applications. This will improve the ease of doing business and help Indian exporters to compete globally.

 

2. One-time amnesty scheme: The policy includes a one-time amnesty scheme for exporters that have not been able to fulfil their obligations under the existing advance authorisation and export promotion capital goods (EPCG) schemes. This will help such exporters to clear their dues and continue their exports.

 

3. New area of potential exports: The policy allows exporters to source goods from another country and send them to a third country without touching Indian shores. This will enable the export of restricted goods and create a new area of potential exports for Indian exporters.

 

4. Initiatives to drive international trade settlement in INR: The policy includes initiatives to drive international trade settlement in the Indian Rupee (INR). This will reduce the dependence on foreign currencies and increase the use of INR in international trade.

 

5. Special advance authorisation scheme: The policy introduces a special advance authorisation scheme for the clothing and apparel sector to help them react to market demands and fashion trends faster. This will help the sector to remain competitive and increase its exports.

 

6. Centres of export excellence: The government has announced four towns in Uttar Pradesh as centres of export excellence for their performance in the apparel, handicrafts, handmade carpets and handlooms sectors. This will help to promote these sectors and create more job opportunities.

 

The main objective of the policy is to almost triple India’s goods and services exports to $2 trillion by 2030, from an estimated $760 billion in 2022-23. The policy also aims to improve the ease of doing business, create more job opportunities, and boost India’s economy. Overall, the Foreign Trade Policy 2023 is a step in the right direction for the Indian government to make exports easier for Indian exporters and increase their global share in merchandise and services exports.