India unveils Foreign Trade Policy 2023, has no end date

India unveiled its Foreign Trade Policy (FTP) 2023 which seeks to boost the country's exports to USD 2 trillion by 2030 by shifting from incentives to remission and entitlement based regime. Commerce and Industry Minister Piyush Goyal on Friday released FTP 2023 in New Delhi, which will come into effect from April 1, 2023. 

Exports growth roadmap!

Grassroots-led export promotion a big priority as Foreign Trade Policy 2023 provides a major thrust to strengthen India's growing stature in global trade. pic.twitter.com/n11Q5gOIWw

— Piyush Goyal (@PiyushGoyal) March 31, 2023

Unlike the practice of announcing 5-year FTP, the latest policy has no end date and will be updated as and when needed, said Director General of Foreign Trade (DGFT) Santosh Sarangi while briefing media about FTP 2023. The DGFT also said India is likely to end this fiscal year with total exports of USD 760-770 billion as against USD 676 billion in 2021-22. The last five-year policy came into force on April 1, 2015. However, it was extended several times in the wake of coronavirus outbreak and subsequent disruptions in economic activities globally. The last extension was given in September 2022 till March 31, 2023.

The new FTP identifies four new Towns of Export Excellence (TEE) -- Faridabad, Moradabad, Mirzapur and Varanasi -- in addition to the already existing 39 TEEs. The FTP benefits have been extended to e-commerce exports, which are estimated to grow to USD 200-300 billion by 2030. The value limit for exports through courier service is being increased from Rs 5 lakh to Rs 10 lakh per consignment, he said. The new FTP also seeks to make the Indian rupee a global currency and allow international trade settlement in the domestic currency. The DGFT further said FTP 2023 is dynamic and responsive to the emerging trade scenario. He also said the department of commerce is being restructured to make it "future-ready".