A Roadmap to 2 Trillion Dollars Exports from India

India's Foreign Trade Policy (FTP) 2023 has been unveiled by Union Minister Piyush Goyal, with a focus on flexibility and adaptability to accommodate the ever-evolving global trade landscape. The policy has set its sights on elevating India's overall exports, including services and merchandise, to a whopping $2 trillion by 2030. The recent upswing in India's exports, a 12.16% YoY increase (from $676.53 billion in FY 21-22 to $770.18 billion in FY 22-23), is primarily driven by services exports (+21.13% YoY) as opposed to merchandise exports (+5.69% YoY). To achieve the ambitious 2030 target, India's exports need to maintain a CAGR of 15% over the next seven financial years, with the FTP serving as a vital roadmap.

Built on four key pillars, the policy aims to create a robust and competitive export sector that can drive India's economic growth and global standing. In this post, I'll share insights on these four pillars that form the foundation of FTP 2023, and in subsequent posts, we will dive deeper into each aspect.

The Four Pillars of India's Foreign Trade Policy 2023:

1. Incentive to Remission: FTP 2023 introduces a range of incentive schemes and remissions for businesses, designed to bolster exports. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme replaces existing rebate schemes, providing exporters with a comprehensive and streamlined approach to receiving timely and adequate support. 2. Export Promotion through Collaboration: The policy emphasizes the need for collaboration among stakeholders, including central and state governments, industry associations, export promotion councils, and Indian Missions. This coordinated effort will enable India to identify new opportunities, explore untapped markets, and diversify its export basket. 3. Ease of Doing Business and Reduction in Transaction Cost: FTP 2023 prioritizes the ease of doing business for exporters by simplifying processes, reducing transaction costs, and implementing IT-based systems. Measures such as the one-time Amnesty Scheme for pending authorizations and streamlining export promotion schemes like EPCG and Advance Authorization have been introduced to facilitate this. 4. Emerging Areas: FTP 2023 zeroes in on emerging sectors like E-commerce exports, Districts as Export Hubs (DEH) initiatives, and streamlining the SCOMET policy. By integrating courier and postal exports with ICEGATE and raising the consignment cap, the policy aims to foster grassroots trade ecosystems and partner with State governments.

1. Incentive to Remission: FTP 2023 introduces a range of incentive schemes and remissions for businesses, designed to bolster exports. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme replaces existing rebate schemes, providing exporters with a comprehensive and streamlined approach to receiving timely and adequate support.
2. Export Promotion through Collaboration: The policy emphasizes the need for collaboration among stakeholders, including central and state governments, industry associations, export promotion councils, and Indian Missions. This coordinated effort will enable India to identify new opportunities, explore untapped markets, and diversify its export basket.
3. Ease of Doing Business and Reduction in Transaction Cost: FTP 2023 prioritizes the ease of doing business for exporters by simplifying processes, reducing transaction costs, and implementing IT-based systems. Measures such as the one-time Amnesty Scheme for pending authorizations and streamlining export promotion schemes like EPCG and Advance Authorization have been introduced to facilitate this.
4. Emerging Areas: FTP 2023 zeroes in on emerging sectors like E-commerce exports, Districts as Export Hubs (DEH) initiatives, and streamlining the SCOMET policy. By integrating courier and postal exports with ICEGATE and raising the consignment cap, the policy aims to foster grassroots trade ecosystems and partner with State governments.

By concentrating on these four key pillars, FTP 2023 lays a solid foundation for a vibrant and competitive export sector that can drive India's economic growth and global standing. With its dynamic and open-ended nature, the policy is poised to adapt and evolve with the changing needs of the time, ensuring that India remains at the forefront of global trade. Stay tuned for more insights on each pillar of FTP 2023 in the upcoming posts!