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Commerce Ministry unveils Foreign Trade Policy 2023; exports grew over 70% since 2015 under current policy.
Mar 31, 2023

Union Commerce, Industry and Textiles Minister Piyush Goyal unveiled the Foreign Trade Policy 2023-28, in New Delhi, on March 31, 2023.

Speaking after the unveiling of Foreign Trade Policy 2023, Mr. Goyal said 'It is said that ordinary people can manage extraordinary results. We have no dearth of skills and ability. We always had the capacity to do more, but it needed the Prime Minister Narendra Modi to catalyse the performance that has led to a jump in exports. We have to meet our exports targets going forward. We will achieve $2 trillion in exports by 2030, but it shouldn’t be that merchandise exports are outperformed by services exports.'

Mr. Goyal said 'Goods exporters need to work a bit harder. The Commerce department is going to make a massive focused outreach to the world, either sectorally or country-wise, over the next four five months. The External Affairs Ministry and Indian missions abroad will work with us on this.'

The Commerce Minister said 'I have never ridden a motorcycle or scooter. But I know our youth prefer faster motorcycles likes Harley Davidsons and Norton. Earlier, from India only Bajaj scooters are exported all over the world, now each sector of ours has opportunities. If we all work together with this confidence, I believe we should together resolve that India is now ready to cross even Harley Davidson.'

Mr. Goyal reiterated 'This is India’s moment. let’s not lose it. It shouldn’t be that a year later we meet again and you wish you had started today and been more ahead by then.'

While speaking at the unveiling of the Foreign Trade Policy, Director General of Foreign Trade Santosh Kumar Sarangi said that 'India’s exports were $435 billion in 2015-16 which have grown over 70% to nearly $760 billion in 2022-23.'

Mr. Sarangi said 'The 2015-20 policy was extended due to the COVID-19 pandemic and the conflict in Europe last year. That policy which expires today had rationalised a lot of export promotion schemes.' He further added 'This year, exports are expected to cross $760 to $770 billion.'

Mr. Sarangi said 'Importer Exporter Codes, issued to individual traders, have been deduplicated after validation with other departments, bringing the total IECs in the country from 18 lakh to around 6 lakh.

Union Commerce, Industry and Textiles Minister Piyush Goyal unveiled the Foreign Trade Policy 2023-28, in New Delhi, on March 31, 2023.

Union Minister Piyush Goyal during the unveiling of Foreign Trade Policy 2023. | Video Credit: ANI

Mr. Goyal reiterated 'This is India’s moment. let’s not lose it. It shouldn’t be that a year later we meet again and you wish you had started today and been more ahead by then.'

'We have ensured there is no end-date to this policy to be able to update it as an when required. The approach of the new policy is to move from an incentive based regime to a remission of taxes regime,' he said.

The Director General of Foreign Trade further stated that 'We are also looking at improving the ease of doing business to reduce transaction costs for exporters and there’s a renewed thrust for new growth areas.'

'Some of the schemes that have been successful like advance authorisation of imports and export promotion for capital goods, with process tweaks,' he said.

Mr. Sarangi said 'The Application fee is being reduced for Advance Authorization and EPCG Schemes for MSMEs, which will benefit 55% to 60% of these schemes’ beneficiaries.'

He said 'We are putting a first time ever provision for merchanting trade in the policy, under which exporters in India can source goods from another country and send them to a third country without touching Indian shores. This will also enable exports of restricted goods.'

He said 'Under FTP 2023, all the PM Mitra parks will be eligible to get benefits as Common services providers. To promote green energy, we have ensured that some items are able to have reduced export obligations. A Special advance authorisation scheme is being launched for the clothing and apparel sector so that they can react to market demands and fashion trends faster.'

Mr. Sarangi said 'FTP benefits are being extended to e-commerce exports which are expected to grow to $200-300 billion by 2030. A policy will be formulated to set up e-commerce export hubs which will include designated zones for warehousing facilities.'

Mr. Sarangi said 'The District Export Promotion Councils headed by the Collector to be energised with the help of regional DGFT offices to help exporters at the district level. We are also coming up with an attractive amnesty scheme for exporters that have not been able to fulfil their obligations under the EPCG and advance authorisation scheme. This is the first amnesty scheme since 2011-12, and can help exporters close their unfulfilled obligations and raise exports going forward. We have not given an end date to this policy so as to ensure that we will keep updating it as per feedback from industry. So sectors that feel that they haven’t got anything, need not be disappointed.

'There is a focus on simplifying policies to facilitate export of dual use high end goods/technology such as UAV/ Drones, Cryogenic Tanks, certain chemicals, etc.,' he said.

He concluded by saying 'A consultative mechanism is being created to resolve issues of trade and Industry. We are working towards making Indian Rupee a global currency and allowing International Trade settlement in INR. The policy also envisages wider engagement with States and Districts to promote exports from the grassroots.'

Commerce Secretary Sunil Barthwal said 'We have done away with the sunset clause for this policy and it will have no end date as it will be continuously amended. So the Sun will not set on India’s exports.

'We are talking of $2 trillion by 2030, if not earlier and there is a clear direction in this policy that we have to grow. our global share in merchandise exports and services exports is very low and we have to grow to 7% to 10%. Even if there are gloomy forecasts about world trade, we should not feel down. Our exports should be relying on competitiveness rather than subsidies and we are getting into that mode now,' Mr. Barthwal said.

thehindu.com

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