Centre unveils foreign trade policy 2023; new policy to encourage trade in Rupee

The new foreign trade policy has highlighted the vision to take India's goods and services exports to $2 trillion by 2030

PGurus Newsdesk

March 31, 2023

The new foreign trade policy has highlighted the vision to take India's goods and services exports to $2 trillion by 2030

The new policy focuses on the internationalization of trade in rupees, says Piyush Goyal

On Friday, the Central government unveiled the new foreign trade policy from 2023 to 2028 in a bid to raise exports to $2 trillion by 2030. This plan arrives amid an uncertain global geopolitical climate and ruptured supply chains, which have harmed trading activities.

Commerce Minister Piyush Goyal unveiled the policy in the presence of industry representatives and top officials of the Ministry. “I am confident that India’s trade will touch $2 trillion exports by 2030,” Goyal said after unveiling the policy.

The new foreign trade policy will encourage trade in the Indian rupee.

Commerce secretary Sunil Barthwal said that the thrust of the policy is that India is ready to trade in rupee with countries facing currency failure or dollar shortage.

While the new policy was expected to be in place until 2028, the Directorate General of Foreign Trade (DGFT) Santosh Sarangi speaking on the occasion, said that there is no end date to the new foreign trade policy and it will be updated as and when required.

The new foreign trade policy shall mark a move from incentives to remission, will focus on export promotion through collaboration with exporters, states, districts, and Indian Missions, will promote ease of doing business, and focus on emerging areas like e-commerce and export hubs.

In a presentation at the event, the Commerce Ministry said that WTO’s global trade forecast predicts a slowdown of one percent in global trade in 2023. It further informed that by March 2023, the nominal GDP of India will be around $3.5 trillion. India is likely to cross $765 billion in exports in 2022-23, Sarangi said further.

Under the policy, the dairy sector would be exempted from maintaining average export obligations.

A special advance authorization scheme has been extended to the apparel and clothing sector, DGFT said.

The value limit for exports through courier services has been increased to Rs.10 lakh from Rs.5 lakh per consignment.

The foreign trade policy encourages e-commerce exports, which are expected to grow to $200-300 billion by 2023.

The policy also introduces an amnesty scheme for one-time settlement of default in export obligations. The country is likely to end 2022-23 with total exports of $760 billion as against $676 billion in 2021-22, Sarangi said.

[With Inputs from IANS]

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