Key Highlights From Foreign Trade Policy (FTP) 2023

In a media briefing, held today on March 31, 2023, the director General of Foreign Trade (DGFT) Santosh Sarangi, informed that Foreign Trade Policy (FTP) 2023, aiming to boost the country's exports to USD 2 trillion by 2030 by shifting from incentives to remission and entitlement based regime. It will not be 5 year plan wth an expiry date, but will be updated as and when required, with inputs form PTI.

The DGFT further said FTP 2023 is dynamic and responsive to the emerging trade scenario. He also said the department of commerce is being restructured to make it "future-ready".

Here are the key highlights.

The Commerce and Industry Minister Piyush Goyal FTP unveiled 2023 will come into effect from April 1, 2023. As per DGFT, India is likely to end this fiscal year with total exports of USD 760-770 billion as against USD 676 billion in 2021-22.

According to the FTP 2023, government has identified four new towns that show points of export excellence ---Towns of Export Excellence (TEE) -- Faridabad, Moradabad, Mirzapur and Varanasi --- in addition to the already existing 39 TEEs.

The FTP benefits have been extended to e-commerce exports, which are estimated to grow to USD 200-300 billion by 2030. Value limit for exports through courier service increased from Rs 5 lakh to Rs 10 lakh per consignment. Special advance authorization scheme extended for apparel & clothing sector.

Unlike 5-year policies, FTP 2023 has no end date and would be modified as per need FTP to provide the policy continuity and a responsive framework. The last five-year policy came into force on April 1, 2015. However, it was extended several times in the wake of coronavirus outbreak and subsequent disruptions in economic activities globally. The last extension was given in September 2022 till March 31, 2023.

Digitisation of applications pertaining to FTP Automatic system-based approval of FTP applications Pilot introduced for cutting processing of applications related to advance authorisation to 1 day.

Dairy sector to get exempted from maintaining average export obligation, Battery electric vehicles; vertical farming equipment & green hydrogen eligible for reduced obligation under Export Promotion Capital Goods (EPCG) scheme.

The new FTP also seeks to make the Indian rupee a global currency and allow international trade settlement in the domestic currency. Introduces amnesty scheme for one-time settlement of default in export obligation by advance authorisation and EPCG authorisation holders. This aims to streamline export of dual use items under SCOMET policy.