Key Highlights: Foreign Trade Policy 2023
Key Highlights: Foreign Trade Policy 2023
Central Government notified the new Foreign Trade Policy 2023, in exercise of powers conferred by section 5 of Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992) [FT (D&R) Act], as amended
Directorate General of Foreign Trade (DGFT) on 31st March 2023 issued notification no. 01/2023 to give enforcing effect to new Foreign Trade Policy, 2023 as per notification, “This Foreign Trade Policy shall come into force with effect from 1st April, 2023.
FTP 2015-20 which was to end on 31.03.2020 was extended due to COVID pandemic and volatile geo-political scenario till 31.03.2023. India has reach record high Export Performance in Merchandise and Services Exports during this period. Policy changes were being undertaken since 2015 even without announcement of a new FTP responding dynamically to the emerging situations.
The Foreign Trade Policy 2023 is being announced to provide the policy continuity and a responsive framework. The Foreign Trade Policy 2023 is being announced to provide the policy continuity and a responsive framework.
New FTP Approach
- From Incentives to Tax Remission
- Greater Trade facilitation through technology, automation, and continuous process re-engineering
- Export promotion through collaboration: Exporters, States, Districts
- Focus on Emerging Areas – E-Commerce Exports, Developing Districts as Export Hubs, Streamlining SCOMET policy et al.
- From Incentives to Tax Remission
- Greater Trade facilitation through technology, automation, and continuous process re-engineering
- Export promotion through collaboration: Exporters, States, Districts
- Focus on Emerging Areas – E-Commerce Exports, Developing Districts as Export Hubs, Streamlining SCOMET policy et al.
Key Highlights
- Foreign Trade Policy to be dynamic and responsive to the emerging trade scenario.
- Wider engagement with States and Districts to promote exports from the grassroots.
- Focus on e-Commerce exports to streamline processes and make it easier for exports to grow in e-commerce space.
- Work towards making Indian Rupees a global currency and facilitating International Trade settlement in INR.
- FTP benefits extended for rupee realisations through special Vostro accounts setup as per RBI circular issued on 11 July 2022
- Benefits of Self-Ratification Scheme for fixation of Input-Output Norms extended to 2 star and above status holders in addition to Authorised Economic Operators at present.
- Special Advance Authorisation Scheme extended to export of Apparel and Clothing sector under para 4.07 of HBP on self-declaration basis to facilitate prompt execution of export orders – Norms would be fixed within fixed time-frame.
- Districts as Export Hubs aims to boost India’s foreign trade by decentralizing export promotion.
- Regional Authorities of DGFT working with the States/UTs to prepare District specific Export Plans.
- All FTP benefits to be extended to e-Commerce exports.
- Value limit for exports through courier is increased to Rs.10,00,000 per consignment.
- Timeline for processing EPCG and Advance Authorisation reduced.
- In line with the “Vivaad se Vishwaas” initiative, which sought to settle tax disputes amicably, Government is introducing a special one-time Amnesty Scheme to address non-compliance in Export Obligations by Advance Authorization and EPCG authorization holders.