Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal said that logistics has become the centerpiece of India's policy making in its journey towards becoming a developed nation and a leader in international trade. He also said that express delivery of services has transformed through innovative ideas under the leadership of Prime Minister Shri Narendra Modi.

 

During his address at the ICRIER Release of the Report on Express Delivery Services in New Delhi, the Minister praised the Indian Council for Research on International Economic Relations (ICRIER) for a report which aims to improve the overall logistics system by partnering with industry and government. He said that ICRIER acts as a bridge between government and industry. He added that it must work with industry experts on the roadmap for fruitful realization and implementation of the recommendations of the report.

 

The Minister noted that the growth in overall exports over the last two years despite challenges like inventory pileup, high raw material costs, freight issues, and the COVID-19 pandemic's impact is commendable. He said that the government is making a conscious effort to change the mindset of looking at things from the old perspective and living in hesitations of history. It is the result of these efforts that the overall exports from India in 2022-23 are expected to be about US$ 765 billion, he said.

 

The Minister said that the government is focused on taking digital connectivity across the length and breadth of the country, with 4G and broadband internet reaching almost every corner of the country. He observed that the seamless digital connectivity enabled India to deliver services on time during the COVID period by facilitating work from home. He said that this express delivery of services through an expansive digital network created over the last 8 years must be duplicated in the logistics sector for timely delivery of goods.

 

He said that Express Delivery Services is yet to come to terms with the huge potential India holds. The Minister noted that scale, efficiency, and building blocks through technology must be utilized to bring down the cost in logistics. He said that the government is taking steps in this direction through massive infrastructure development through PM GatiShakti for smarter and faster planning and implementation of projects, Unified Logistics Interface Platform and dedicated freight corridors.

 

He highlighted that when the Prime Minister said that India can be the trusted partner to the world at the G20 Summit, the message went out that India is ready to do business with its transparent and rule based ecosystem and its highly talented and committed human resource. The Minister said that trust, transparency, and talent will help us in our trade.

 

He said that the Prime Minister's vision for India is big and bold, and the entire world is looking up to India with hope and confidence that the country can deliver. He appreciated the role played by youth in the startup sector and encouraged them to think big and work towards making India a developed country.

 

The Minister said that the Prime Minister’s innovative ideas, including transporting liquid medical oxygen by trains and empty containers by air transport during the COVID-19 pandemic, led to a significant reduction in delivery time and saved numerous lives. He emphasized the importance of speed in determining the success of India and called for newer ideas and ways of doing work in the spirit of togetherness for the country.

The Food Safety and Standards Authority of India (FSSAI) has issued an order regarding the usage of ‘words’ along with 'curd' in local languages for the purpose of labelling after it has notified the provisions for omission of the term 'curd' from the Standards of Fermented Milk Products vide notification dated Jan 11, 2023.  

 

The food businesses can now use word from the local language like 'Curd (Dahi)' OR 'Curd (Mosaru)' OR 'Curd (Zaamut daud)' OR 'Curd (Thayir)' OR 'Curd (Perugu)’ etc.  

 

According to the FSSAI, ‘General Standard for Milk and Milk Products’ under the ‘Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 clearly lay down guidelines for use of dairy term(s)in the nomenclature of dairy products including milk, milk product or a composite milk product and related prohibitions for such use in non-dairy products.  

 

'Accordingly, when term 'curd' was written along with 'Dahi' in the said regulation, it was restricting its use for non-dairy products. As many representations were received recently on omission of the term 'curd', from the Standards of Fermented Milk Products, it has been decided that FBOs may use the term Curd along with any other designation (prevalent regional common name) in brackets on the label,' reads the order.  

 

The order added that ‘accordingly, Curd can also be labelled as per following examples: 'Curd (Dahi)' OR 'Curd (Mosaru)' OR 'Curd (Zaamut daud)' OR 'Curd (Thayir)' OR 'Curd (Perugu)’.

 

It is pertinent to note that the food authority has notified the changes through the Food Safety and Standards (Food Products Standards and Food Additives) First Amendment Regulations, 2023 wherein under the standards for fermented milk products applied on fermented milks, including, heat-treated fermented milks, concentrated fermented milks and composite milk products based on these products, the food authority has amended that the name 'Fermented Milk? may be replaced with designations Dahi, and Yoghurt if the product complies with the relevant provisions of Standard specified for these products.

 

'Provided further that in case of fermented products complying with the relevant provisions of Dahi, any other designation (prevalent regional common name) may be used together with the term ‘dahi’ in brackets on the label,' reads the amended notification.

 

These amendments shall come into force on August 1, 2023, the notification added.

The Ministry of Commerce and Industry has told Parliament that during the current financial year (April 2022 – January 2023), the agricultural exports have registered an increase of 6.04% amounting to USD 43.37 billion over the exports of USD 40.90 billion during the corresponding period of the previous financial year i.e April 2021 to January 2022.  

 

However, during the financial year 2021- 22, India’s agricultural export touched the highest ever level of USD 50.21 billion.

 

The statement of Commerce Ministry added that the Government has been monitoring  export performance including that of agricultural and processed food products in the current financial year i.e. 2022-23 vis a vis 2021- 22 however no targets have been fixed yet for export for the year 2023-24.

 

According to the Ministry, the Government is utilising the District as Export Hub (DEH) Initiative to achieve the objectives of Agriculture Export Policy. Under the DEH initiative, products including agricultural and processed food products with export potential have been identified in all 733 districts across the country and a State Export Strategy has been prepared in 28 States & UTs.

 

'To address the issue of stakeholders’ participation in the decision-making process for export promotion activities, the Department of Commerce has established Export Promotion Forums (EPFs) for individual products under the aegis of the APEDA. The EPFs have representation from trade/industry, line ministries/departments, regulatory agencies, research institutes, state governments etc. In all 9 EPFs have been formed for rice, banana, grapes, mango, onion, dairy products, nutri-cereals, pomegranate and floriculture respectively,' reads the statement by the Ministry of Commerce.  

 

The ministry stated that APEDA has also played an important role in opening of new markets for agricultural products in the recent past such as Canada, China, South Korea, Taiwan, Portugal, Indonesia and Iran.

India's goods exports touched $447 billion till the last count for 2022-23 fiscal year against $422 billion in 2021-22, commerce and industry minister Piyush Goyal said on Tuesday.

 

The final export and import data for 2022-23 would be released by mid April. At present, the ministry is in the process of collating the data. The trade data for goods comes with a lag of about 15 days and in the case of services data, it is 45 days.

 

Goyal said services exports are estimated to cross $320 billion in 2022-23.

 

Growth in merchandise goods would be around 6% for the last fiscal, he said, adding that it has grown from '$422 billion to $447 billion at last count (as the) final numbers are still awaited'.

 

He said the country's exports are growing despite global challenges such as rise in raw material prices, restrictions in exports of certain products like wheat and Russia-Ukraine war.

 

'The final numbers (exports of goods and services will be closer to $765 billion... I would not be surprised if we actually go up to $772 billion which we figured while drawing the road map for $2 trillion of exports by 2030,' the minister said.

 

If the data reaches $772 billion, Goyal said, 'then, I will probably reset the $2 trillion target also'.

 

Speaking at an event, he also said that the express delivery services sector had huge potential for growth in India.

 

'To bridge the cost in logistics, we need to look at scale, efficiency and the building blocks through technology,' he added.

 

Going by the strong foundation which the government is building in terms of high expenditure for developing modern infrastructure, internationalisation of trade , free trade agreements and growth in exports of goods and services, the economy may reach $35-40 trillion by 2047, he added.

The Agricultural and Processed Food Products Export Development Authority (APEDA) will hold detailed discussions with the All-India Rice Exporters’ Association, major exporters, experts and other stakeholders on the new code of practice (CoP) document the United Kingdom has come out with on basmati rice. 

 

APEDA will discuss the CoP documents and its provisions to analyse the short and long-term impacts on India’s basmati exports, if any. 

 

Responding to businessline’s report on UK’s new CoP for basmati triggering a controversy, APEDA said it was brought out by the British Retail Consortium and The Rice Association, UK, the representative organisation for the UK rice sector. 

 

Not regulatory document

'Its main aim is to promote the interests of members in all matters pertaining to the import, preparation, processing, packaging and marketing of rice. This has also been discussed with the Federation of European Rice Millers (FERM), AIREA and Rice Exporters Association of Pakistan (REAP),' the authority said. 

 

Stating that CoP was not a regulatory document, it said rather the associations had agreed with regard to basmati rice trade in the UK. AIREA, India’s major association engaged in basmati export, was involved in bringing out the CoP.

 

The scope of the CoP was limited to labelling of basmati rice sold in the UK and the code is voluntary. '...those choosing not to follow its provisions are required to meet the similar minimum legal requirements to ensure that their basmati rice is authentic,' APEDA said.

 

The authority said the CoP lists varieties that are currently approved by Indian and Pakistani authorities. It covers most of the popular basmati varieties notified under the Indian Seeds Act, 1966, provisions. The new CoP has included certain newly-notified basmati varieties.  

 

Deletion of 5 varieties

On the CoP deleting five varieties grown in India, APEDA said four varieties — Malviya Basmati Dhan, Pant Basmati 1, Vallabh Basmati 21 and Vallabh Basmati 24 — were not being cultivated. Thus, exports will not be affected. 

 

However, the deletion of Punjab basmati in the list seemed to be an error as India had no such notified variety. 'All the notified varieties having Punjab Basmati as prefix have some numeral as suffix in the varietal name like Punjab Basmati 1, 2, 3 etc and hence does not have an impact on Indian basmati exports,' it said. 

 

On dilution of the growing area, particularly the Indo-Gangetic Plains, APEDA said, 'The document has also referred to the February 2003 publication by the Food Standards Agency as the basis for the Code with the emphasis on ‘specific areas of Indo Gangetic Plains’'.  

 

On basmati Geographical Indication (GI) tag expert S Chandrasekaran questioning on APEDA not being consulted over the new CoP, the authority said 'it would have been prudent on the part of the UK Association to discuss the CoP document with APEDA as owner of the basmati GI tag which is also registered in UK.'

 

A geopolitical issue

APEDA has registered Basmati name and logo as Certification Trade Mark (CTM) in the UK, it pointed out. On DNA fingerprint, the authority said the Food Safety and Standards Authority of India has framed  the requirement of purity and it will be implemented soon.  

 

APEDA concurred with AIREA views that the new CoP will strengthen India’s hold in the UK basmati market. 

 

When contacted, Chandrasekaran said basmati GI is a geopolitical subject involving the country’s boundary and sovereignty. Though the CoP said the code is voluntary, it says those not following it must 'meet the same minimum legal requirements' for the rice to be authentic.  'The voluntary nature is being indirectly made   mandatory,' he said. 

 

The new CoP has strategic implications on the ownership of the fragrant rice.  'If a precedent is created by modifying the label of basmati (by any other organisation or foreign organisation), it encourages similar actions in the future if it suits a particular interest,' Chandrasekaran said.

 

Nepal opposed India

On the deletion of varieties, he wondered what if in the future the CoP deleted an active commercial variety, though it has now done away with only a non-commercial one. 'It will have serious ramifications in North-West India. Also, by accepting the DNA testing protocol today, India will lose the right to question the delisting of varieties in the future,' the expert said.  

 

On the dilution of the Indo-Gangetic Plain description, Chandrasekaran said Nepal has opposed India’s application for a Basmati GI tag in the European Commission.

 

'There must be some reasons for the change of position in the area.  For example, the Code of Practice of Basmati Rice (CoP), United Kingdom, issued in June 2017 did not consider Himachal Pradesh and Delhi as growing areas,' he said.

 

APEDA’s application with the GI Registrar included Himachal Pradesh and Delhi from the start. 'Why did CoP 2017 drop these areas? Dropping of the varieties and the growing areas is creating a precedent where in the future, other countries could do the same,' he said.  

 

Also, the DNA testing protocol developed by the University of Bangor, Wales, is funded by DEFRA.  'It is imperative to challenge the protocol.

Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies. This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in Indian Rupee (INR). This initiative by RBI is aimed at facilitating the growth of global trade and supporting the interests of the global trading community in Indian Rupee (INR).

 

India International Bank of Malaysia (IIBM), based in Kuala Lumpur, has operationalised this mechanism by opening a Special Rupee Vostro Account through its Corresponding Bank in India i.e. Union Bank of India.

 

Economic and commercial relations are the mainstay of bilateral partnerships. With strengthening bilateral economic and commercial relations, Malaysia has emerged as 13th largest trading partner for India while India figures among the ten largest trading partners for Malaysia which is also our 3rd largest trading partner in ASEAN. A bilateral Comprehensive Economic Cooperation Agreement(CECA) covering goods, services and investment has come into effect from 1 July 2011.

 

India's major export items to Malaysia are mineral fuels, mineral oils; aluminum and articles thereof, meat and edible meat offal, iron and steel, copper and articles thereof, organic chemicals, nuclear reactors, boilers, machinery and mechanical appliances; electrical machinery and equipment; etc. India's major import items from Malaysia are palm oil, mineral fuels, mineral oils, electrical machinery and equipment; animal or vegetable fats and oils and their cleavage products; nuclear reactors, boilers, machinery and mechanical appliances; copper and articles thereof, wood; wood charcoal, aluminum, organic chemicals, iron and steel and miscellaneous chemical products

 

The first Indian joint venture, Godrej commenced operations in 1968, and in the seventies and early eighties, Malaysia hosted the largest number of Indian joint ventures in any country. Indian companies' present involvement in Malaysia is in palm oil refining, power, railways, information technology, biotechnology, manufacturing industrial goods, higher education, civil construction, and training.

 

As per official figures (DPIIT), Malaysia ranks as the 26th largest investor in India with FDI inflow of US$ 1.12 billion during the period April 2000 to September 2021.

 

Presently, there are more than 150 Indian companies, including 61 Indians are expected to be of the tune of US$7 billion. The highest joint ventures and 3 Indian Public Sector Undertakings operating in investment proposals have been in the telecommunications, Malaysia. Their areas of operation are manufacture of textiles and yarn, followed by fuels (power and oil refinery), roads and highways.

The government will identify close to 100 districts across the country to turn them into export hubs by adopting a 'bottom-up approach', Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said on Friday.

 

'Our idea is to involve more youngsters at the district level (like collectors) so that they see the initiative to boost export as a core function, and not a peripheral function,' Sarangi said.

 

The phase one of the plan will cover 75-100 districts, which could go up in the next leg.

 

It will focus on both goods and services exports, and will cover multiple products or services, unlike the One District One Product programme, Sarangi said.

 

AMNESTY FOR EXPORTERS

 

The special amnesty scheme for default in export obligations proposed in the new Foreign Trade Policy (FTP) will allow pending cases to be settled by exporters by paying customs duties that were exempted in proportion to their unfulfilled export obligation, the DGFT said.

 

No interest will be charged on the exempted portion of additional customs duty or the special additional customs duty.

 

Entities that were unable to meet their export obligation after importing inputs or capital goods at zero duty under the Advance Authorisation and the Export Promotion Capital Goods (EPCG) schemes will be able to tap this window. It will remain open for six months through September 2023.

 

The scheme is along the lines of the 'Vivad se Vishwas' initiative of the government, which sought to resolve tax disputes amicably.

 

CLEARING DUES TO EXPORTERS

 

The government will likely incur a 'notional saving' of Rs.7,000-8,000 crore from its allocation of Rs.56,027 crore announced in September 2021 to clear all the pending dues owed to exporters until FY21 under various schemes, Sarangi said.

 

The DGFT has already cleared about Rs.42,000 crore of dues so far. Arrears in respect of disputed cases are yet to be settled, while most other pending claims have been cleared, , he said.

 

The dues amount is being disbursed in the form of scrips. The exporters can use these scrips to pay import duties or can sell these to importers who, in turn, can use them to pay the customs duties. So, these are 'notional gains' for the government, the DGFT explained.

 

FTP'S GREEN PUSH

In a green push, electric vehicles, vertical farming equipment, waste water treatment, rain water harvesting systems, and green hydrogen will be eligible for reduced export obligation requirement under the EPCG scheme, as per the new Foreign Trade Policy.

Indian basmati farmers plan to increase the area under the fragrant rice crop in coming kharif season as they hope to receive really good prices after realising record prices last year for their produce. Experts, however, said prices will depend on export demand and geopolitical developments .

 

'I have already bought sufficient seeds from recent Pusa Kisan Mela as I plan to increase the area under basmati to 15 acres from 10 acres done last year,' said Ashok Dahiya of Sonipat district in Haryana, the largest basmati-producing State. He expects a similar price for basmati next year too after selling his crops (different varieties) at  Rs.3,800-4,000 per quintal last year.

 

'Though (expansion of acreage) not entirely on my own field, but definitely it is profitable even to take land on lease and go for basmati than any other crop,' he said, adding the costs of annual lease is more than Rs.35,000/acre depending on the location and conditions of land.

 

Echoing similar views

Whether its is Jind, Sirsa or Karnal, farmers in Haryana have echoed similar sentiments though the scale of expansion will vary depending on the land availability. India’s basmati rice production was estimated at 9 million tonnes (mt) from an area of 6.2 million hectares in 2022-23. Of this, Haryana produced 3.81 mt, Punjab 3.12 mt and Uttar Pradesh 1.79 mt. Due to Covid pandemic, no survey was undertaken in 2020 and 2021.

 

The current export price trend indicates an interesting insight into the demand-supply matrix. Kharif 2023 for basmati rice will be a crucial year in view of comprehensive and accelerated rice and agricultural demand outlook, said trade policy analyst S Chandrasekaran. 'The supplier-driven sentiments will redefine the realisation of prices,' he said.

 

Basmati rice shipments increased 41 per cent to $3.82 billion (Rs.30,514 crore) in the 10 months up to January in the current fiscal and the volume surged 18 per cent to 3.66 mt. The unit value realisation increased to $1,044 a tonne from $877/tonne a year ago.

 

Exporters term the increased demand in importing countries to high prices for basmati amid global uncertainties after the Ukraine-Russia conflict. Besides the partial restrictions on export of non-basmati rice — ban on broken variety and 20 per cent duty on non-parboiled rice — had some influence on basmati prices, exporters said.

 

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today launched the Foreign Trade Policy 2023 saying that it is dynamic and has been kept open ended to accommodate the emerging needs of the time. He stated that the policy had been under discussion for a long time and has been formulated after multiple stakeholder consultations. India's overall exports, including services and merchandise exports, has already crossed US$ 750 Billion and is expected to cross US$ 760 Billion this year, he said.

 

The Minister referred to the interaction that Prime Minister, Shri Narendra Modi with the exporters on 06th August, 2021 and encouraged them to increase exports and get more deeply involved in the global value chain. He lauded the vision and guidance of the Prime Minister who believed that given the size of the Indian economy and manufacturing & service sector base, the potential for the country to grow is manifold. He said that this vision is at the core of the policy.

 

The Minister noted that the remarkable achievement in the overall export figure of crossing US$ 760 Billion in these challenging times across the world has been the result of enthusiasm and encouragement pumped in by the Prime Minister. He said that this achievement is in sync with the target set in the roadmap in 2021 after the interaction with the Prime Minister.

 

He stressed that every opportunity for export must be captured and utilised effectively. He also mentioned that in the next 5 months during India’s G20 presidency there should be a massive concentrated outreach with the world both sector-wise and country-wise.

 

The release of the policy was also attended by Union Minister of State for Commerce & Industry, Smt. Anupriya Patel, Commerce Secretary, Shri Sunil Barthwal and Member Customs, Central Board of Indirect Taxes and Customs, Shri Rajiv Talwar. Director General of Foreign Trade, Shri Santosh Kumar Sarangi gave a detailed presentation on the policy.

 

The Key Approach to the policy is based on these 4 pillars: (i) Incentive to Remission,  (ii) Export promotion through collaboration - Exporters, States, Districts, Indian Missions, (iii) Ease of doing business, reduction in transaction cost and e-initiatives and (iv) Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET policy.

 

Foreign Trade Policy (2023) is a policy document which is based on continuity of time-tested schemes facilitating exports as well as a document which is nimble and responsive to the requirements of trade. It is based on principles of ‘trust’ and ‘partnership’ with exporters. In the FTP 2015-20, changes were done subsequent to the initial release even without announcement of a new FTP responding dynamically to the emerging situations.Hereafter, the revisions of the FTP shall be done as and when required.Incorporating feedback from Trade and Industry would also be continuous to streamline processes and update FTP, from time to time.

 

The FTP 2023 aims at process re-engineering and automation to facilitate ease of doing business for exporters. It also focuses on emerging areas like dual use high end technology items under SCOMET, facilitating e-commerce export, collaborating with States and Districts for export promotion.

 

The new FTP is introducing a one-time Amnesty Scheme for exporters to close the old pending authorizations and start afresh. 

 

The FTP 2023 encourages recognition of new towns through 'Towns of Export Excellence Scheme' and exporters through 'Status Holder Scheme'. The FTP 2023 is facilitating exports by streamlining the popular Advance Authorization and EPCG schemes, and enabling merchanting trade from India.

 

Process Re-Engineering and Automation

 

Greater faith is being reposed on exporters through automated IT systems with risk management system for various approvals in the new FTP. The policy emphasizes export promotion and development, moving away from an incentive regime to a regime which is facilitating, based on technology interface and principles of collaboration.Considering the effectiveness of some of the ongoing schemes like Advance Authorisation, EPCG etc. under FTP 2015-20, they will be continued along with substantial process re-engineering and technology enablement for facilitating the exporters. FTP 2023 codifies implementation mechanisms in a paperless, online environment, building on earlier 'ease of doing business' initiatives. Reduction in fee structures and IT-based schemes will make it easier for MSMEs and others to access export benefits.

 

Duty exemption schemes for export production will now be implemented through Regional Offices in a rule-based IT system environment, eliminating the need for manual interface. During the FY23-24, all processes under the Advance and EPCG Schemes, including issue, re-validation, and EO extension, will be covered in a phased manner. Cases identified under risk management framework will be scrutinized manually, while majority of the applicants are expected to be covered under the 'automatic' route initially.

 

Towns of Export Excellence

 

Four new towns, namely Faridabad, Mirzapur, Moradabad, and Varanasi, have been designated as Towns of Export Excellence (TEE) in addition to the existing 39 towns. The TEEs will have priority access to export promotion funds under the MAI scheme and will be able to avail Common Service Provider (CSP) benefits for export fulfillment under the EPCG Scheme. This addition is expected to boost the exports of handlooms, handicrafts, and carpets.

 

Recognition of Exporters

 

Exporter firms recognized with 'status' based on export performance will now be partners in capacity-building initiatives on a best-endeavor basis. Similar to the 'each one teach one' initiative, 2-star and above status holders would be encouraged to provide trade-related training based on a model curriculum to interested individuals. This will help India build a skilled manpower pool capable of servicing a $5 Trillion economy before 2030. Status recognition norms have been re-calibrated to enable more exporting firms to achieve 4 and 5-star ratings, leading to better branding opportunities in export markets.

 

Promoting export from the districts

 

The FTP aims at building partnerships with State governments and taking forward the Districts as Export Hubs (DEH) initiative to promote exports at the district level and accelerate the development of grassroots trade ecosystem. Efforts to identify export worthy products & services and resolve concerns at the district level will be madethrough an institutional mechanism – State Export Promotion Committee and District Export Promotion Committee at the State and District level, respectively.District specific export action plans to be prepared for each district outlining the district specific strategy to promote export of identified products and services.

 

Streamlining SCOMET Policy

 

India is placing more emphasis on the 'export control' regime as its integration with export control regime countries strengthens. There is a wider outreach and understanding of SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) among stakeholders, and the policy regime is being made more robust to implement international treaties and agreements entered into by India.A robust export control system in India would provide access of dual-use High end goods and technologies to Indian exporters while facilitating exports of controlled items/technologies under SCOMET from India.

 

Facilitating E-Commerce Exports

 

E-commerce exports are a promising category that requires distinct policy interventions from traditional offline trade. Various estimates suggest e-commerce export potential in the range of $200 to $300 billion by 2030. FTP 2023 outlines the intent and roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, book-keeping, returns policy, and export entitlements. As a starting point, the consignment wise cap on E-Commerce exports through courier has been raised from Rs.5Lakh to Rs.10 Lakh in the FTP 2023. Depending on the feedback of exporters, this cap will be further revised or eventually removed.Integration of Courier and Postal exports with ICEGATE will enable exporters to claim benefits under FTP. The comprehensive e-commerce policy addressing the export/import ecosystem would be elaborated soon, based on the recommendations of the working committee on e-commerce exports and inter-ministerial deliberations.Extensive outreach and training activities will be taken up to build capacity of artisans, weavers, garment manufacturers, gems and jewellery designers to onboard them on E-Commerce platforms and facilitate higher exports.

 

Facilitation under Export Promotion of Capital Goods (EPCG) Scheme

 

The EPCG Scheme, which allows import of capital goods at zero Customs duty for export production, is being further rationalized. Some key changes being added are:

 

Prime Minister Mega Integrated Textile Region and Apparel Parks (PM MITRA) scheme has been added as an additional scheme eligible to claim benefits under CSP(Common Service Provider) Scheme of Export Promotion capital Goods Scheme(EPCG).

Dairy sector to be exempted from maintaining Average Export Obligation – to support dairy sector to upgrade the technology.

Battery Electric Vehicles (BEV) of all types, Vertical Farming equipment, Wastewater Treatment and Recycling, Rainwater harvesting system and Rainwater Filters, and Green Hydrogen are added to Green Technology products – will now be eligible for reduced Export Obligation requirement under EPCG Scheme

Facilitation under Advance authorization Scheme

 

Advance authorisation Scheme accessed by DTA units provides duty-free import of raw materials for manufacturing export items and is placed at a similar footing to EOU and SEZ Scheme. However, the DTA unit has the flexibility to work both for domestic as well as export production. Based on interactions with industry and Export Promotion councils, certain facilitation provisions have been added in the present FTP such as

 

Special Advance Authorisation Scheme extended to export of Apparel and Clothing sector under para 4.07 of HBP on self-declaration basis to facilitate prompt execution of export orders – Norms would be fixed within fixed timeframe.

Benefits of Self-Ratification Scheme for fixation of Input-Output Norms extended to 2 star and above status holders in addition to Authorised Economic Operators at present.

Merchanting trade

 

To develop India into a merchanting trade hub, the FTP 2023 has introduced provisions for merchanting trade. Merchanting trade of restricted and prohibited items under export policy would now be possible. Merchanting trade involves shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary. This will be subject to compliance with RBI guidelines, andwon’t be applicable for goods/items classified in the CITES and SCOMET list. In course of time, this will allow Indian entrepreneurs to convert certain places like GIFT city etc. into major merchanting hubs as seen in places like Dubai, Singapore and Hong Kong.

 

Amnesty Scheme

 

Finally, the government is strongly committed to reducing litigation and fostering trust-based relationships to help alleviate the issues faced by exporters. In line with 'Vivaad se Vishwaas' initiative, which sought to settle tax disputes amicably, the governmentis introducing a special one-time Amnesty Scheme under the FTP 2023to address default on Export Obligations. This scheme is intended to provide relief to exporters who have been unable to meet their obligations under EPCG and Advance Authorizations, and who are burdened by high duty and interest costs associated with pending cases.All pending cases of the default in meeting Export Obligation (EO) of authorizations mentioned can be regularized on payment of all customs duties that were exempted in proportion to unfulfilled Export Obligation.The interest payable is capped at 100% of these exempted duties under this scheme.  However, no interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty and this is likely to provide relief to exporters as interest burden will come down substantially.It is hoped that this amnesty will give these exporters a fresh start and an opportunity to come into compliance.

Commerce and Industry Piyush Goyal on Friday exuded confidence that India's merchandise and services exports will cross USD 2 trillion by 2030 from the current level of USD 765 billion, as he unveiled a 'dynamic and responsive' foreign trade policy. He said that goods exports have witnessed good growth considering the current global scenario while services exports may see a quantum jump in the current fiscal.

 

'We have to meet our exports targets going forward,' said the minister, adding that 'we will need to work a bit harder' on goods exports.

 

'It shouldn't be that by 2030, services exports cross USD 1 trillion while you (merchandise exports) lag behind. I am confident that we will cross USD 2 trillion by 2030,' Goyal said.

 

The minister said he has asked the Department of Commerce to undertake a 'massive focused concentrated' outreach globally in the next 4-5 months sectorally as well as country-wise through Indian missions abroad with special focus on trade, technology, tourism and investment.

 

India's total exports growth decelerated to 13.4 per cent in 2022-23 annually from 36 per cent expansion in the previous financial year as global demand was affected following outbreak of Russia-Ukraine war in February 2022 and other geopolitical reasons.

 

'We will achieve exports of USD 1 trillion each in goods and services by 2030,' Goyal said.

 

The Foreign Trade Policy 2023 outlines a host of measures and incentives to boost exports from India.

 

'We always had the capacity to do more, but I feel it needed Prime Minister Narendra Modi to pump up our energies and enthusiasm and see the change witnessed thereafter,' Goyal said.

 

The WTO's global trade has forecast growth in world trade to slow down to 1 per cent in 2023 due to global uncertainties.