Key Highlights of Foreign Trade Policy 2023
The Directorate General of Foreign Trade (DGFT), the Department of Commerce, the Government of India has issued Key Highlights of Foreign Trade Policy 2023 dated March 31, 2023.
Foreign Trade Policy 2015-20:
FTP 2015-20 which was to end on 31.3.2020 was extended due to COVID pandemic and volatile geo-political scenario till March 31, 2023.
India has reach record high Export Performance in Merchandise and Services Exports during this period. India’s Merchandise and Services exports is expected to cross record USD 760 Billion in FY2022-23. FTP 2015-20 contributed to this illustrious export performance.
New Foreign Trade Policy 2023:
- Policy changes were being undertaken since 2015 even without announcement of a new FTP responding dynamically to the emerging situations.
- The Foreign Trade Policy 2023 is being announced to provide the policy continuity and a responsive framework.
- Subsequent revision(s) in the FTP shall be done as and when required and shall not linked to any date.
- Continous feedback from Trade and Industry to streamline processes and update Policy & procedures.
New FTP Approach:
- From Incentives to Tax Remission
- Greater Trade facilitation through technology, automation, and continuous process re-engineering
- Export promotion through collaboration: Exporters, States, Districts
- Focus on Emerging Areas – ECommerce Exports, Developing Districts as Export Hubs, Streamlining SCOMET policy et al.
Key FTP Highlights:
- Ease of doing business, reduction in transaction cost and e-initiatives
- Export promotion initiatives
- Districts as Export Hubs initiative
- E-Commerce Exports
- Steps to Boost Manufacturing
- Special one-time Amnesty Scheme for default in Export Obligations
- Emphasis on streamlining SCOMET Licensing Procedure
Way Forward:
- Foreign Trade Policy to be dynamic and responsive to the emerging trade scenario.
- Wider Engagement with States and Districts to promote exports from the grassroots.
- Focus on E-commerce exports to streamline processes and make it easier for exports to grow in e-commerce space.
- Sector specific targets to achieve the goal of a one trillion-dollar merchandise exports by 2030.
- Consultative mechanism to resolve issues of trade and Industry.
- Work towards making Indian Rupees a global currency and facilitating International Trade settlement in INR.
- Restructuring of Department of Commerce to make it future ready
The Directorate General of Foreign Trade (DGFT), the Department of Commerce, the Government of India has issued Key Highlights of Foreign Trade Policy 2023 dated March 31, 2023.
Foreign Trade Policy 2015-20:
FTP 2015-20 which was to end on 31.3.2020 was extended due to COVID pandemic and volatile geo-political scenario till March 31, 2023.
India has reach record high Export Performance in Merchandise and Services Exports during this period. India’s Merchandise and Services exports is expected to cross record USD 760 Billion in FY2022-23. FTP 2015-20 contributed to this illustrious export performance.
New Foreign Trade Policy 2023:
- Policy changes were being undertaken since 2015 even without announcement of a new FTP responding dynamically to the emerging situations.
- The Foreign Trade Policy 2023 is being announced to provide the policy continuity and a responsive framework.
- Subsequent revision(s) in the FTP shall be done as and when required and shall not linked to any date.
- Continous feedback from Trade and Industry to streamline processes and update Policy & procedures.
New FTP Approach:
- From Incentives to Tax Remission
- Greater Trade facilitation through technology, automation, and continuous process re-engineering
- Export promotion through collaboration: Exporters, States, Districts
- Focus on Emerging Areas – ECommerce Exports, Developing Districts as Export Hubs, Streamlining SCOMET policy et al.
Key FTP Highlights:
- Ease of doing business, reduction in transaction cost and e-initiatives
- Export promotion initiatives
- Districts as Export Hubs initiative
- E-Commerce Exports
- Steps to Boost Manufacturing
- Special one-time Amnesty Scheme for default in Export Obligations
- Emphasis on streamlining SCOMET Licensing Procedure
Way Forward:
- Foreign Trade Policy to be dynamic and responsive to the emerging trade scenario.
- Wider Engagement with States and Districts to promote exports from the grassroots.
- Focus on E-commerce exports to streamline processes and make it easier for exports to grow in e-commerce space.
- Sector specific targets to achieve the goal of a one trillion-dollar merchandise exports by 2030.
- Consultative mechanism to resolve issues of trade and Industry.
- Work towards making Indian Rupees a global currency and facilitating International Trade settlement in INR.
- Restructuring of Department of Commerce to make it future ready
Source From : https://www.a2ztaxcorp.com/wp-content/uploads/2023/03/Key-Highlights-of-FTP-2023-Booklet_230331_122255.pdf
