Govt releases Foreign Trade Policy 2023, eyes $2 trn export target by 2030

India is likely to end this fiscal year with total exports of $760-770 billion as against $676 billion in FY22

The Centre on Friday came out with Foreign Trade Policy (FTP) 2023 seeking to boost the country's exports amid slowing global trade. The Centre has outlined the vision to take India's goods and services export to $2 trillion by 2030 by shifting from incentives to remission and entitlement-based regime.

The Minister for Commerce and Industry Piyush Goyal unveiled FTP 2023 which will come into effect from April 1, 2023.

Santosh Sarangi, director general of foreign trade (DGFT) said that, unlike the earlier practice of announcing five-year FTP, the latest policy has no end date and will be updated as and when needed.

Sarangi also said India is likely to end this financial year (FY23) with total exports of $760-770 billion as against $676 billion in FY22.

In 2023, the World Trade Organisation has predicted a slowdown of one per cent in global trade. The ministry said that by March 2023, the nominal gross domestic product (GDP) of India will be around $3.5 trillion.

The last five-year policy came into force on April 1, 2015. However, it was extended several times in the wake of the coronavirus outbreak and subsequent disruptions in economic activities globally. The last extension was given in September till March 31, 2023.

The new FTP identifies four new Towns of Export Excellence (TEE) namely Faridabad, Moradabad, Mirzapur and Varanasi. This is in addition to the already existing 39 TEEs.

The FTP benefits have been extended to e-commerce exports, which are estimated to grow to $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.

Sarangi further said FTP 2023 is dynamic and responsive to the emerging trade scenario. He also said the department of commerce is being restructured to make it "future-ready".

(With agency inputs)