Foreign Trade Policy

Generally speaking, the new FTP continues with the same old provisions under the major export promotion schemes

The new Foreign Trade Policy (FTP) 2023, announced recently, will help in promoting exports of sectors from e-commerce, batteries for electric vehicles and farm equipment, experts said on Tuesday. India on March 31 came out with the new policy which aimed at pushing rupee trade, increasing outward shipments to USD 2 trillion by 2030, and promoting e-commerce exports, amid global uncertainties. Rumki Majumdar, Economist at Deloitte India, said that the policy emphasises on the manufacturing and export sectors with a long term view. Sectors such as batteries for EVs, green hydrogen, and garment, amongst others will benefit from the policy, she said, adding that with over 80 per cent of trade being done in the USD, encouraging trade in Indian rupee will be a relief. "It will also add to its resilience to external shocks and improve negotiating capabilities in international trade," Majumdar said. Shashi Mathews, Partner at IndusLaw, said that through the policy, the government's focus

The new policy gives no specific period for its validity or any expiry date, but it can be amended anytime

The idea will be to monitor the process of the district-wise export plan across all 750 districts across the country, and enable the states and DGFT regional authorities to upload all information

In case there is a change in the policy, the transition time in that case will help the exporter execute the contract, giving some certainty for the exporter

India's foreign trade is expected to cross the USD 1.6 trillion mark this fiscal despite global economic uncertainties, economic think tank GTRI said in a report. The Global Trade Research Initiative (GTRI) said the USD 1.6 trillion would be about 48 per cent of India's nominal GDP of USD 3.4 trillion for the fiscal year ending March 2023. The higher trade-to-GDP ratio also speaks of high trade openness which the country practices, GTRI co-founder Ajay Srivastava said. According to their analysis of the data by the think tank, the growth rate in the exports of services would be higher than that of goods. Higher growth rate in services exports compared to the outbound shipments of goods has improved overall performance of India's exports, he said. India's overall exports of goods and services during April-March 2023 are estimated to reach USD 755 billion, exhibiting a positive growth of 11.6 per cent over the same period last year (April-March 2022). The report said that India's

Foreign trade policy must engage with realities of world trade

'There are other sectors, such as engineering goods, agriculture, food processing, where the potential is very high'

New policy is in line with government's priority towards moving from an 'incentive-based regime' to a 'remission and entitlement-based regime', thereby making the policy compliant with WTO rules

Apart from that, under the policy, e-commerce as export hubs (ECEH) will be set up through private initiative or in public-private partnership (PPP) mode, in partnership with the states or the Centre

India is likely to end this fiscal year with total exports of $760-770 billion as against $676 billion in FY22

India will unveil its much-awaited new Foreign Trade Policy 2023-28 on Friday, with a view to boost exports amid slowing global trade. Commerce and Industry Minister Piyush Goyal will announce the foreign trade policy, according to the ministry. The current foreign trade policy (2015-20) is in force till March 31, 2022. The term of the previous five year policy had ended in March 2020. However, it has been extended repeatedly in wake of Covid outbreak and resulting lockdowns. The last extension was given in September 2022 till March 31, 2023. Goyal will announce the foreign trade policy which is expected to outline the vision statement for taking India's goods and services exports to USD 2 trillion by 2030. The country is likely to end this fiscal year with total exports of USD 760 billion as against USD 676 billion in 2021-22. India's trade has been hit by supply chain disruptions and slowdown in global trade amidst ongoing Russia-Ukraine war. Sources said the new policy is li

Set to be unveiled on Friday, it is likely to focus on export hubs, e-com

Services exports, however, grew over 36 per cent in February at $29.15 billion, according to the Department of Commerce's estimates

The 2015 Foreign Trade Policy Statement said that the government aims to increase India's exports of merchandise and services from $465.9 billion in 2013-14 to approximately $900 billion by 2019-20

Final call on announcement of the policy will be taken by March-end

During the period, the country's imports were higher by 26.19 per cent to $12,325.87 million

India is trying to promote trade settlements in rupee with not just Russia, but also Sri Lanka and Mauritius

Take a look at the status of the ongoing FTA negotiations by India

The central banks of India and UAE are discussing a concept paper on promoting bilateral trade in rupee and dirham with a view to reduce transaction cost, a top official said on Friday. India's Ambassador to the UAE Sunjay Sudhir said that the concept paper for trade in local currencies was shared by India. The central banks of both the countries will discuss the standard operating procedures and modalities, he told reporters here. The objective of the exercise is to reduce the cost of transactions, he added. India and the UAE had already signed a free trade agreement (FTA) in February to give a fillip to bilateral trade and economic ties. The free trade agreement was aimed at providing significant benefits to Indian as well as UAE businesses, including enhanced market access and reduced tariffs. Following the free trade pact, bilateral trade is expected to increase from the current USD 60 billion to USD 100 billion in the next five years. Bilateral trade between India and the U