The government unveiled its Foreign Trade Policy (FTP) 2023 on Friday. It aims to increase exports to USD 2 trillion by 2030 by moving away from an incentive-driven system to one based on remission and entitlements. In contrast to the custom of issuing a 5-year FTP, Santosh Sarangi, director general of foreign trade (DGFT), explained that the new policy has no expiration date and will be amended as and when necessary.
Earlier, Piyush Goyal, the minister of commerce and industry, introduced FTP 2023, which will take effect from April 1, 2023. India is expected to complete this fiscal year with overall exports of USD 760–770 billion, up from USD 676 billion in 2021–22, according to the DGFT. The previous five-year plan became effective on April 1, 2015. However, it was repeatedly prolonged as a result of the global economic problems brought on by the coronavirus outbreak.
The last extension was given in September 2022 till March 31, 2023. The new FTP identifies four new 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. The value limit for exports through courier service is being increased from Rs 5 lakh to Rs 10 lakh per consignment, he said.
The new FTP also seeks to make the Indian rupee a global currency and allow international trade settlement in the domestic currency. 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”.