India’s Foreign Trade Policy (FTP) of 2023 was launched during a remarkable period, with the nation achieving its highest export figures to date, amounting to $760 billion in merchandise and services. This policy is designed to maintain this upward trajectory despite global hurdles such as supply chain disruptions and international conflicts.
Previously, India implemented incentives like the Merchandise Exports from India Scheme (MEIS) and the Services Exports from India Scheme (SEIS), which were eventually phased out due to non-compliance with World Trade Organization (WTO) regulations. The new approach emphasizes production-linked incentives (PLI), aiming to enhance domestic production and, in turn, exports.
FTP 2023 introduces a groundbreaking change by lacking a fixed expiration date. This shift signifies a move towards a more dynamic and responsive policy framework that can adapt to the evolving global and domestic economic contexts.
The latest FTP places a significant emphasis on digital governance and trade facilitation. Plans to create an e-commerce export portal highlight India's commitment to simplifying customs and logistics processes, thereby enabling businesses, particularly micro, small, and medium enterprises (MSMEs), to actively engage in global trade.
Under this policy, the digitization of Export Obligation Discharge Certificates and the incorporation of various digital tools will expedite trade processes. With the Directorate General of Foreign Trade (DGFT) automating permissions and approvals, processing times are expected to reduce significantly.
The FTP 2023 increases the limit for e-commerce exports to ₹10 lakh, presenting substantial opportunities for small businesses and artisans to access international markets. This initiative aims to position India as a competitive player in the global e-commerce arena.
Programs like the Districts as Export Hubs scheme are designed to leverage local talent, empowering artisans and small enterprises to explore international markets. This grassroots strategy aspires to establish a robust export ecosystem that is accessible across all socio-economic levels.
In light of rising defense exports, FTP 2023 revises the Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) policy. The revised approach simplifies the licensing process for dual-use items, ensuring alignment with India's commitments to various international export control regimes.
In essence, FTP 2023 charts a course for India’s trade landscape to become more adaptive, inclusive, and technologically advanced, with the goal of sustaining growth amidst a rapidly changing global economic environment.
Q1. What are the key features of India's Foreign Trade Policy 2023?
Answer: FTP 2023 emphasizes digital governance, production-linked incentives, and inclusivity for MSMEs. It aims to enhance export potential and streamline trade processes without a fixed expiration date.
Q2. How does FTP 2023 support e-commerce in India?
Answer: The policy raises the e-commerce export limit to ₹10 lakh, facilitating small businesses and artisans to participate in the global market, thereby boosting India's e-commerce landscape.
Q3. What changes have been made to the SCOMET policy under FTP 2023?
Answer: FTP 2023 simplifies the licensing process for dual-use items under the SCOMET policy, aligning India’s trade practices with international export control commitments.
Q4. How does the FTP 2023 benefit MSMEs?
Answer: The policy enhances digital trade facilitation and creates opportunities through initiatives like Districts as Export Hubs, empowering MSMEs to access international markets effectively.
Q5. What is the significance of production-linked incentives in FTP 2023?
Answer: Production-linked incentives are crucial in boosting domestic manufacturing, which, in turn, is expected to enhance export volumes and strengthen India's position in the global market.
Question 1: What does FTP 2023 aim to enhance in the Indian economy?
A) Agricultural production
B) Digital governance and trade facilitation
C) Manufacturing of luxury goods
D) Traditional export methods
Correct Answer: B
Question 2: Which scheme was phased out due to WTO non-compliance?
A) Production-Linked Incentive Scheme
B) Services Exports from India Scheme (SEIS)
C) Merchandise Exports from India Scheme (MEIS)
D) Districts as Export Hubs
Correct Answer: C
Question 3: What is the new e-commerce export limit set by FTP 2023?
A) ₹5 lakh
B) ₹10 lakh
C) ₹15 lakh
D) ₹20 lakh
Correct Answer: B
Question 4: What is the primary goal of the Districts as Export Hubs scheme?
A) Increase luxury imports
B) Empower local artisans for exports
C) Promote urban industries
D) Support multinational corporations
Correct Answer: B
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