India's overall exports are expected to cross US$ 760 Billion this year
The Foreign Trade Policy (FTP) 2023 announced on Friday seeks to boost India's exports to USD 2 trillion by 2030. India's overall exports, including services and merchandise, has already crossed US$ 750 Billion and is expected to cross US$ 760 Billion this year, Union Commerce and Industry Minister Piyush Goyal said while launching the Foreign Trade Policy 2023. Significantly, unlike in the past, the new policy has no end date; it would be updated as and when necessary. Goyal said that it is dynamic and has been kept open ended to accommodate the emerging needs of the time. The key approach to the policy is based on four pillars: 1. Incentive to Remission. 2. Export promotion through collaboration - Exporters, States, Districts, Indian Missions. 3. Ease of doing business, reduction in transaction cost and e-initiatives. 4. Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET policy. 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. FTP 2023 encourages recognition of new towns through 'Towns of Export Excellence Scheme' and exporters through 'Status Holder Scheme' in addition to promoting exports from the districts. 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. According to the Ministry of Commerce and Industry, 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 2023 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. The FTP 2023 is also facilitating exports by streamlining the popular Advance Authorization and EPCG schemes, and enabling merchanting trade from India. Additionally, the Export Promotion of Capital Goods (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: 1. 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). 2. Dairy sector to be exempted from maintaining Average Export Obligation – to support dairy sector to upgrade the technology. 3. 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.