Foreign Trade Policy 2023 in detail- Part 1
Principle basis of FTP 2023:
Foreign trade policy 2023 is designed as policy document that incorporates elements based on principles :
- Continuity of time tested schemes meant for facilitating exports.
- Responsive to dynamic requirements of trade.
- Principle of trust and partnership with exporters.
Policy is designed with an approach that is based on 4 pillars:
Point #1 Incentive to remission.
Point #2 Export promotion through collaboration between exporters, states and districts.
Point #3 Ease of doing business, reduction in transaction costs and e- initiatives.
Point #4 Focusing on emerging areas like E-commerce, developing districts as export hubs and streamlining SCOMET policy.
Let us see the focus elements in detail:
Promoting export from the districts:
Building Partnership which state governments to promote districts as export hubs & thereby accelerating the development of grassroot level trade ecosystem. Initiatives include
- Identifying export worthy products
- Resolve constraints at district level through institutional mechanism
- Specific Export action plans for each district, outlining specific strategy for promotion of identified products / services.
Streamlining SCOMET policy:
FTP 2023 is placing more emphasis on export control regime, as the quantum of transactions with export control regime countries increases.
The export control system is made more robust to secure India's interest at the same time implementing international treaties & agreements, which will
- provide access to Indian exporters, to dual-use high end goods & technologies abroad &
- Also facilitate export of controlled items/technologies under SCOMET, from India.
Towns of excellence:
In addition to existing 39 TEEs, 4 new towns have been designated as towns of export excellence. They are Faridabad for apparels, Moradabad for handicrafts, Mirzapur for handmade carpet & durries and Varanasi for handloom and handicrafts.
Facilitating E-commerce exports:
Identified as promising category that has export potential of $ 200-300Bn, requiring distinct policy interventions different from the regular offline trade regulations, FTP 2023 lays emphasis on establishment of E-Commerce hubs and related supporting systems.
some of the key initiatives are:
- Consignment cap for eCommerce exports via courier mode has been raised from 5 lakhs to 10 lakhs and will be subject to revision or removal, based on future feedbacks.
- Integration of Courier and postal exports with ICEGATE, to enable exporters claim benefits under FTP.
- Capacity building initiatives by providing training and extensive support to artisians, weavers, garment manufacturers, gems & jewellery designers & onboard them into eCommerce platform to facilitate increased exports.
FTP pib Press release mentioned that a more Comprehensive e-commerce policy based on recommendations of committee of experts and departmental deliberations is to be issued subsequently.
Recognition of exporters:
a. Status Holder exporters/ Star export houses will now be involved in capacity building initiative. 2 star and above status holders would be invited to provide trade related training , to interested individuals based on a model curriculum.
b. Status recognition norms will be re-calibrated to enable more firms to achieve 4 and 5 star rating, that provides better branding opportunities for them in export market.
This initiative is expected to strengthen capacity building and creating skilled manpower pool, that will aid India achieving the 5 trillion economy target before 2030.
---------To be Continued