New Foreign Trade Policy 2023
The Directorate General of Foreign Trade, Department of Commerce recently released New Foreign Trade Policy which would be applicable with effect from 01st April, 2023. The earlier Foreign Trade Policy 2015 was extended till 31.03.2023 due to Covid Pandemic. The new FTP 2023 is based on approach of shifting from Incentives to Tax Remission, Greater Trade facilitation through technology, automation, and continuous process re-engineering, Export promotion through collaboration and Focus on Emerging Areas – Ecommerce Exports, Developing Districts as Export Hubs, Streamlining SCOMET policy etc.
The highlights of the new FTP 2023 include a) Ease of Doing Business, Reduction in Transaction Cost and e-Initiatives through Online approvals without Physical Interface, Reduction in user charges for MSMEs under Advance Authorization and EPCG Schemes, E-Certificate of Origin and Paperless filing of Export Obligation Discharge Applications, b) Export Promotion Initiatives such as Status Holder Export Thresholds Rationalised, Merchanting Trade Reform, Rupee Payment to be accepted under FTP Schemes and Towns of Export Excellence, c) Districts as Export Hubs Initiative, d) E-Commerce Exports, e) Steps to Boost Manufacturing, f) Special One-time Amnesty Scheme for Default in Export Obligations and g) Emphasis on Streamlining SCOMET Licensing Procedure.
The New FTP 2023 would be dynamic and responsive to the emerging trade scenario with wider engagement with States and Districts to promote exports from the grassroots and focus on goal of one trillion-dollar merchandise exports and one trillion-dollar services exports by 2030 as well as making Indian Rupees a global currency and facilitating International Trade settlement in INR.
