The Foreign Trade Policy 2023, according to Director General of Foreign Trade (DGFT) Santosh Sarangi, aims to increase the nation’s exports to USD 2 trillion by 2030 by switching from incentives to a remission and entitlement based regime. It won’t be a five-year plan with a set end date; instead, it will be revised as needed.

The DGFT added that the FTP 2023 is flexible and sensitive to changing trading conditions. The Department of Commerce is being reorganised, he added, in order to make it “future-ready.”

Key highlights of Foreign Trade Policy 2023

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.