Further, the new policy will be shifting from incentives to a remission and entitlement-based regime.
“The policy will be dynamic. There is no end date to ensure when we have feedback, we will keep changing this document and update it. If there is a sector which feels this FTP does not have anything for them, don’t feel disappointed,” Santosh Sarangi, Director General of Foreign Trade (DGFT) said.
A consultative mechanism to address the concerns of trade will be put in, he added.
“Ambition of reaching $2 trillion exports by 2030 will be continuously followed up”
The FTP benefits have been extended to e-commerce exports, which are estimated to grow to USD 200-300 billion by 2030.
The value limit for exports through courier service is being increased from Rs 5 lakh to Rs 10 lakh per consignment, he said.
The new FTP also seeks to make the Indian rupee a global currency and allow international trade settlement in the domestic currency.
The DGFT said that the overall exports, inclusive of merchandise and services, are likely to touch $770 billion in FY23, against $676 billion in FY22.
“We will undertake a massive outreach globally in the next four months to boost exports,” Union Minister Piyush Goyal said.
The policy seeks to encourage e-commerce exports which is expected to grow to $200-300 bn by 2023. An amnesty scheme for one-time settlement of default in export obligation has also been introduced.
Further, Faridabad, Moradabad, Mirzapur and Varanasi have been declared as towns of export excellence.
The current foreign trade policy (2015-20) is in force till March 31, 2022. The term of the previous five year policy had ended in March 2020. However, it has been extended repeatedly in wake of Covid outbreak and resulting lockdowns. The last extension was given in September 2022 till March 31, 2023.
India’s trade has been hit by supply chain disruptions and slowdown in global trade amidst ongoing Russia-Ukraine war.