Foreign Trade Policy 2023: The latest Foreign Trade Policy 2023 was unveiled by Shri Piyush Goyal, the Union Minister of Commerce and Industry.
FTP 2023, comprising the Objectives and Key Highlights of the Policy, is worth discussing.
- 1 Foreign Trade Policy 2023
- 2 Foreign Trade Policy 2023 Highlights
- 2.1 Process Re-Engineering and Automation
- 2.2 Towns of Export Excellence
- 2.3 Recognition of Exporters
- 2.4 Promoting Export from the Districts
- 2.5 Streamlining SCOMET Policy
- 2.6 Facilitating E-Commerce Exports
- 2.7 Facilitation under Expo. Promotion of Capital Goods (EPCG) Scheme
- 2.8 Facilitation under Advance authorization Scheme
- 2.9 Amnesty Scheme
Foreign Trade Policy 2023
The policy document titled Foreign Trade Policy (2023) is designed to address both long-standing export initiatives as well as flexible and adaptable measures to meet changing trade demands.
- These 4 pillars form the foundation of the Key Approach policy.
- Title modified: Encouraging Recovery The title Encouraging Recovery has the same word count as Incentive to Remission.
- Collaboration is key to promoting exports – Indian exporters, districts, states, and missions must work together.
- facilitation measures are being implemented by the government to promote entrepreneurship and attract foreign investment. To foster entrepreneurship and lure foreign investment, the government is executing measures aimed at enhancing business feasibility, cutting down on transaction expenses, and introducing electronic endeavors and facilitation schemes.
- Innovative Spheres – Encouraging E-Commerce Growth in Emerging Regions and Simplifying Vetting Procedures for SCOMET Guidelines.
Foreign Trade Policy 2023 Highlights
Process Re-Engineering and Automation
- The new FTP instills more confidence in exporters as automated IT systems, coupled with risk management protocols, are increasingly trusted for various approvals.
- The strategy focuses on boosting exports and growth, transitioning away from incentivizing to facilitating, utilizing technological integration and promoting teamwork principles.
- FTP 2023 introduces methods of implementation in a digital, paper-free domain, expanding on previous measures to simplify business procedures.
- Export benefits are set to become more accessible to MSMEs and other entities through the implementation of simplified fee structures and technology-based schemes.
- Regional Offices will now be responsible for implementing duty exemption schemes for export production using an IT system environment that follows specific rules, thus removing the requirement for manual intervention.
Towns of Export Excellence
- In addition to the 39 existing towns, four new towns have been selected as Towns of Export Excellence (TEE). These towns are Faridabad, Mirzapur, Moradabad, and Varanasi.
- Export promotion funds under the MAI scheme will be predominantly directed towards the TEEs, while also ensuring that they can receive export fulfillment benefits from Common Service Providers (CSP) through the EPCG Scheme.
- The MAI Scheme is a program designed to facilitate India’s exports by acting as a driving force for sustained promotion.
- India’s manufacturing competitiveness can be improved with the assistance of the Export Promotion Capital Goods (EPCG) Scheme, which encourages the importation of capital goods for the production of excellent goods and services.
- Forecasts indicate that this new inclusion will lead to an upsurge in handloom, handicraft, and carpet exports.
Recognition of Exporters
- Export-oriented companies that have been granted ‘status’ due to their exceptional export performance are now eligible to participate as collaborative members in capacity augmentation programs.
- In line with the “each one teach one” campaign, individuals possessing 2-star and above status would be motivated to impart skill-based education to aspiring people using a model syllabus.
- India is in need of a skilled workforce that can cater to the demands of a $5 trillion economy by 2030.
- Exporting companies now have a higher chance of achieving a 4 or 5-star rating due to updated recognition standards. This will allow for improved branding prospects in overseas markets.
Promoting Export from the Districts
- The primary objective of FTP is to establish collaborations with the authorities of different States and propel the Export Hubs (DEH) program to foster exports at the district level.
- A comprehensive export plan will be created for each district, detailing a unique approach to boost the export of selected goods and services.
Streamlining SCOMET Policy
- As India’s partnership with countries in the export control regime becomes stronger, the country is giving greater importance to its own export control system.
- Stakeholders have gained a better grasp and reach of SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies).
Facilitating E-Commerce Exports
- Online sales exports represent a hopeful area that necessitates different policy measures than brick-and-mortar commerce.
- By 2030, India’s capability for e-commerce export has been predicted to be between $200 to $300 billion, according to multiple approximations.
- The plan presented in FTP 2023 sets out the objective and plan for creating hubs of e-commerce and associated components.
- The FTP 2023 introduces an increase in the consignment wise cap for E-Commerce exports through courier from ₹5Lakh to ₹10 Lakh, serving as an initial step.
Facilitation under Expo. Promotion of Capital Goods (EPCG) Scheme
- Enhancements are being made to the EPCG Scheme to streamline the import of capital goods for export production without incurring Customs duty.
- DTA units can import raw materials for producing goods that will be exported without paying any duties, thanks to the Advanced Authorization Scheme.
- The FTP 2023 has been updated to include facilitation provisions following input from industry and Export Promotion councils.
- The alleviation of issues faced by exporters is a priority for the Government, who are dedicated to reducing litigation and promoting relationships based on trust.
- The government is implementing a unique Amnesty Scheme under FTP 2023 to resolve Export Obligation defaults, as part of their Vivaad se Vishwaas program that aims to resolve tax disputes in a harmonious manner.
- The aim of this program is to extend support to exporters who have faced difficulties in fulfilling their duties related to EPCG and Advance Authorizations.
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