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Economy
Mahesh

01/04/23 08:25 AM IST

New foreign trade policy

In News
  • India recently launched a “dynamic and responsive” Foreign Trade Policy (FTP) without any sunset clause that will be effective from April 1 with an aim to achieve $2 trillion goods and services exports by 2030.
Major Provisions
  • The policy included a new one-time amnesty scheme for defaulters in export obligations, and measures to facilitate international trade settlement in rupee even with countries facing currency crisis.
  • The new FTP is based on four pillars including moving from incentives to remission, export promotion through collaboration with exporters.
  • States, districts and Indian missions, ease of doing business, reduction in transaction cost and e-initiatives as well as encouraging emerging areas such as e-commerce, developing districts as export hubs and streamlining the SCOMET policy.
  • The FTP has also outlined a roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, book-keeping, returns policy, and export entitlements.
  • The consignment wise cap on e-commerce exports through courier has been raised from Rs 5 lakh to Rs 10 lakh and depending on the feedback of exporters, it would be further revised or eventually removed.
  • The new Foreign Trade Policy is designed to facilitate greater trade, boost manufacturing, promote exports, further enable ease of doing business and also work towards making Indian rupee a global currency, adding further impetus to India’s emergence as the global trading hub.
  • The FTP has also envisaged automatic approval of various permissions based on process simplification and technology implementation, which would now be done within one day for issuances of EPCG and Advance Authorisation, revalidation of authorisations and extension of export obligations.
  • There will also be a reduction in user charges for MSMEs under AA and EPCG.
  • Four new towns, Faridabad, Mirzapur, Moradabad and Varanasi, have been designated as Towns of Export Excellence (TEE) in addition to the existing 39 towns.
  • It will also partner with states to take forward the districts as export hubs (DEH) initiative to promote exports at the district level.
Significance
  • The new FTP has focused on the ease of doing business through paperless regulation and rule-based automatic approval systems.
  • It also rationalised export performance threshold to enable more beneficiaries to achieve higher recognition and reduce transaction cost for exports, for example, qualifying criterion for a five-star exporter has been reduced from $2 billion to $800 million
Source- Indian Express

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