Foreign Trade Policy (FTP) 2023, released by the government last Friday, aims to increase exports to $2 trillion by 2030 by shifting from an incentive-based system to remission and entitlements. The Director General of Foreign Trade (DGFT) briefed the media on FTP 2023 and noted that, unlike the custom of issuing a 5-year FTP, the latest policy has no expiration date and would be updated as and when necessary.
FTP 2023 will take effect on April 1, 2023. India is expected to complete this fiscal year with total exports of $760–770 billion, up from $676 billion in 2021–22, according to the DGFT. The previous five-year plan became effective on April 1, 2015. However, it was repeatedly extended due to the worldwide economic problems brought on by the coronavirus pandemic. The last extension, till March 31, 2023, was given in September 2022.
In addition to the existing 39 TEEs, the new FTP identifies four other Towns of Export Excellence (TEE): Faridabad, Moradabad, Mirzapur, and Varanasi. The benefits of the FTP have been extended to include exports from e-commerce, which are anticipated to reach $200–300 billion by 2030.
According to the Director General of Foreign Trade, the value limit for exports made via courier service has been raised from Rs 5 lakh to Rs 10 lakh per consignment. The new FTP aims to internationalize the Indian rupee and enable trade settlement in the national currency. The DGFT added that the FTP 2023 is flexible and responsive to changing trading conditions. He added that the Department of Commerce is being reorganized to make it “future-ready.”
