Foreign Trade Policy 2023: No Five-Year Timetable, $2 Trillion Export Goals by 2030

The Foreign Trade Policy (FTP) 2023 was unveiled by the current administration on Friday. Unlike the earlier, five-year FTP, this one is lengthy and has no set exit/end date. By switching from incentive schemes to a reimbursement and welfare regime, the FTP 2023 aims to increase the nation’s exports to 2 trillion USD by 2030.

The Foreign Trade Policy 2023, which is scheduled to take effect on April 1, 2023, was introduced by Piyush Goyal, Union Minister of Commerce and Industry. In a press briefing on FTP 2023, Santosh Sarangi, the Director General of Foreign Trade (DGFT) noted that, in contrast to the custom of introducing 5-year FTP, the new policy seems to have no exit date and would be modified as and when necessary.

New Introductions in FTP 2023

India is expected to complete the current fiscal year with export earnings of $760–770 billion, up from $676 billion in 2021–22, according to the DGFT.

According to the Foreign Trade Strategy 2023, export marketing plan procedures have been rendered entirely paperless and electronic under digitalization. The Foreign Trade Policy states that global trade settling in rupees is permitted and that FTP would create procedures for merchandising commerce.

The Growth Analysis

Machinery for vertical farming as well as battery electric mobility are included in green technology items. The new FTP 2023 names four additional Towns of Export Excellence (TEEs), furthermore to the 39 TEEs that presently exist: Varanasi, Mirzapur, Moradabad, and Faridabad.

The revised FTP aims to internationalize the Indian rupee and enable the resolution of commerce in the country’s currency. The DGFT added that the FTP 2023 is flexible and sensitive to changing trading conditions. The Department of Commerce is being reorganized, he added, to make it “future-ready.”