NL Corresspondent
India on Friday came out with a ‘dynamic and responsive' foreign trade policy with the objective of raising the country's outward shipments to $2 trillion by 2030, making Indian Rupee a global currency and incentivising e-commerce exports.
The approach of Foreign Trade Policy (FTP) 2023 is to move from ‘incentive to remission' based regime; encourage collaboration between exporters, states, districts and Indian Missions; reduce transaction cost; and develop more export hubs. India is likely to cross $765 billion merchandise and services exports in financial year 2022-23 which ends on Friday. The total exports were $676 billion in previous fiscal year.
Unlike the practice of 5-year FTPs, this time the government has come out with a dynamic and responsive trade policy without any end date, and will be updated as per the emerging global scenario.
“We have ensured there is no end date to this policy, it will be updated from time to time,” said Director General of Foreign Trade (DGFT) Santosh Sarangi while briefing media on the salient features of FTP 2023 unveiled by Commerce and Industry Minister Piyush Goyal. Goyal said Department of Commerce will be making a massive focused outreach to the world, either sectorally or country-wise, over the next 4-5 months. Ministry of External Affairs and Indian Missions abroad will work with the department.
“We have to meet our exports targets going forward.
“We will achieve $2 trillion in exports by 2030, but it should not be that merchandise exports are outperformed by services exports,” the minister said.
The DGFT said India is likely to cross $765 billion merchandise and services exports in financial year 2022-23 which ends on Friday. In 2021-22, the total exports were $676 billion. The FTP aims at internationalisation of trade in Indian rupee. It allows international trade settlement in INR and required changes have been introduced for grant of export benefits and fulfilment of Export Obligation (EO) for export realisations in the domestic currency as per RBI.
