Context: Union Minister of Commerce and Industry has launched the Foreign Trade Policy 2023 saying that it is dynamic and has been kept open ended to accommodate the emerging needs of the time.
More on news:
India’s Foreign Trade Policy expands export benefits to e – commerce overseas shipments, with the aim to increase exports to $200 – $300 billion annually by 2030. There is a plan to create hubs for exports with designated zones for warehousing. These hubs will help e-commerce aggregators to undertake everything from stocking to customs clearances and processing of returned orders. These hubs would also include a processing facility for last mile activities like labelling, testing and repackaging.
Foreign Trade Policy (FTP) 2023
- It aims at process re-engineering and automation to facilitate ease of doing business for exporters.
- It also focuses on emerging areas like dual use high end technology items under SCOMET (Special Chemicals, Organism, Materials, Equipment and Technologies), facilitating e-commerce export, collaborating with States and Districts for export promotion.
- It is introducing a one-time Amnesty Scheme for exporters to close the old pending authorizations and start afresh.
- It encourages recognition of new towns through “Towns of Export Excellence Scheme” and exporters through “Status Holder Scheme”.
- It will facilitate exports by streamlining the popular Advance Authorization and Export Promotion Capital Goods (EPCG) schemes, and enabling merchanting trade from India.
- To develop India into a merchanting trade hub, it has introduced provisions for merchanting trade. Merchanting trade of restricted and prohibited items under export policy would now be possible. (Merchanting trade involves shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary).
Key pillars of FTP 2023
- Incentive to Remission
- Export promotion through collaboration – Exporters, States, Districts, Indian Missions
- Ease of doing business, reduction in transaction cost and e-initiatives
- Emerging Areas – E – Commerce Developing Districts as Export Hubs and streamlining SCOMET policy