Foreign Trade Policy 2023: Seeks to boost exports to $2 trillion by 2030

India has unveiled its Foreign trade policy 2023 and seeks to boost the country's exports to $2 trillion by 2030. The government reiterated sector specific targets to achieve the goal of $1 trillion merchandise exports and $1 trillion services exports by 2030. It is aiming to achieve this target by shifting from incentives to remission and entitlement based regime. "The flexibility in foreign trade policy will help grow export potential", said Commerce & Industry Minister Piyush Goyal.

"Unlike the practice of announcing 5-year FTP, the latest policy has no end date and will be updated as and when needed", said Director General of Foreign Trade (DGFT) Santosh Sarangi. This new trade policy will come into effect from 1st April.

Piyush Goyal has said that the government will engage in massive trade outreach globally in terms of sectors and nations in the coming months. The government is also planning to promote exports through a collaboration of exporters, states, districts, Indian Missions. A revamp of e-certificate of origin platform is proposed to provide its self certification and automatic approval.

A major aspect of the policy is to allow international trade settlement in Indian rupee with a view of making INR a global currency. "India is ready to trade in Indian Rupee with countries which are facing currency failure or have dollar shortage", said Commerce Secretary Sunil Barthwal.

Foreign Trade Policy 2023 has introduced a new Amnesty scheme through which a one time settlement of default in export obligation by Advance Authorization and EPCG authorization holders can be done. This will be available upto 30 September 2023.

Dairy sector will be exempted from maintaining average export obligation. A series of items including battery electric vehicles, vertical farming equipment, wastewater treatment and recycling, rainwater harvesting system, rainwater filters and green hydrogen are added to green technology products. Under EPCG scheme green technology products eligible for reduced export obligation requirement. The Value limit for exports via courier service increased to Rs 10 lakh from Rs 5 Lakh per consignment.

The Foreign trade policy also ensures more recognition to exporters. The export performance threshold for recognition to exporters through status holders has been rationalised. This will enable more beneficiaries to achieve higher recognition and reduce transaction cost for exports.