Foreign Trade Policy 2023
Why in the news?
Recently, Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles has unveiled Foreign Trade Policy 2023.
What is the need for the policy?
- To increase the export of India
- To be in incompliance with WTO regulations
- To push MSMSE sector
- To include new sectors
- To address the grievances mechanisms
What are the key features of Foreign Trade Policy (FTP) 2023?
- Aim -To almost triple India’s goods and services exports to $2 trillion by 2030.
- Ease of doing business -By digitizing applications, reducing timelines for processing applications and lowering transaction costs for exporters.
- Merchanting trade -FTP 2023 has allowed Indian intermediaries to carry out merchanting trade involving the shipment of goods from one foreign country to another without touching Indian ports.
- Simplifying policies -To facilitate export of dual-use high-end goods and technology such as UAVs [unmanned aerial vehicles], drones, cryogenic tanks and certain chemicals.
- International trade settlement -In the Indian Rupee (INR) granting benefits to those exports that are paid for via the rupee.
- Special advance authorization scheme -Launched for the clothing and apparel sector so that they can react to market demands and fashion trends faster.
- Star ratings -To recognize exporters will be available to lower qualification thresholds.
- PM MITRA (Pradhan Mantri Mega Integrated Textile Region and Apparel) -All PM MITRA parks to get benefits as common services providers.
- Towns of Export Excellence (TEE) -Towns producing goods of Rs 750 crore or more can be recognized as TEE based on the potential for growth in exports.
- TEE also get the benefit of global recognition and brand credibility.
- There were already 39 such TEEs in the country and four new have been added to the list in FTP 23.
|Varanasi||Handloom and handicrafts|
- Online trade –Promoting cross border trade in digital economy including moves to facilitate the establishment of dedicated e-commerce export hubs.
- E-commerce exports -All FTP benefits are to be extended to e-commerce exports.
- Creation of designated zones with warehousing facilities to help e-commerce.
- Input duty remissions -Are being continued.
- Status Holders –The policy has reduced the threshold of minimum exports required for the recognition of exporters as Status Holders.
- Many smaller exporters can achieve higher status and avail benefits that will reduce transaction costs.
- MSME- Charges have been brought within ₹5,000 for MSME under the popular Advance Authorizations and Export Promotion Capital Goods (EPCG) scheme.
- One-time amnesty – A one-time amnesty has been offered, giving exporters more time to avail of both the AA and EPCG schemes.