India Unveils Foreign Trade Policy 2023

The government released its Foreign Trade Policy (FTP) 2023 today, with the goal of increasing the country’s exports to $2 trillion by 2030 by transitioning from incentives to a remission and entitlement-based regime.

Unlike previous FTP announcements, the latest policy has no end date and will be amended as needed, according to Director General of Foreign Trade (DGFT) Santosh Sarangi during a media conference on FTP 2023.

Previously, Commerce and Industry Minister Piyush Goyal presented the FTP 2023, which would take effect on April 1, 2023.

According to the DGFT, India’s overall exports are expected to be $760-770 billion this fiscal year, up from $676 billion in 2021-22.

The previous five-year policy went into effect on April 1, 2015. Nonetheless, it was extended multiple times in the aftermath of the coronavirus pandemic and related interruptions in global economic activity. The most recent extension was granted in September 2022 until March 31, 2023.

In addition to the 39 existing TEEs, the new FTP recognises four new Towns of Export Excellence (TEE): Faridabad, Moradabad, Mirzapur, and Varanasi.

The FTP advantages have been extended to e-commerce exports, which are expected to reach $200-300 billion by 2030.

The value ceiling for courier service exports is being raised from 5 lakh to 10 lakh per cargo, he said.

The new FTP also aims to make the Indian rupee a global currency and allow foreign trade to be settled in the local currency.

According to the DGFT, FTP 2023 is dynamic and sensitive to emerging trade scenarios. He also stated that the Department of Commerce is being reformed in order to be “future-ready.”