Model Answer
0 min readIntroduction
The Foreign Trade Policy (FTP), often referred to as the EXIM policy, provides the framework for promoting India’s international trade. The current FTP 2023-28, announced on March 31, 2023, replaces the previous FTP 2017-22, with a focus on boosting exports to $2 trillion by 2030. This policy aims to make India a global leader in exports, emphasizing technology adoption, ease of doing business, and promoting diversification of export destinations and products. It represents a shift towards a more digitally enabled and responsive trade regime, aligning with the ‘Atmanirbhar Bharat’ (Self-Reliant India) vision.
Key Features of FTP 2023-28
The FTP 2023-28 is built on four pillars: Promotion of Exports, Development of Export Infrastructure, Streamlining Logistics, and Technology Adoption.
1. Promotion of Exports
- Focus on Emerging Economies: The policy prioritizes diversification of export markets, with a focus on exploring opportunities in Africa, Latin America, and Southeast Asia.
- Sector-Specific Schemes: Continued support for sectors like textiles, pharmaceuticals, and engineering goods through schemes like the Remission of Duties and Taxes on Exported Products (RoDTEP). RoDTEP rates were rationalized and expanded under this policy.
- Export Promotion Councils (EPCs): Enhanced role for EPCs in identifying new markets and promoting exports of their respective sectors.
- Common Digital Trade Platform: The policy advocates for a unified digital platform for all trade-related activities, aiming to reduce transaction costs and improve efficiency.
2. Ease of Doing Business
- Reduced Documentation: Simplification of export procedures and reduction in documentation requirements through digitization and automation.
- Online Application Process: Fully online application process for various export incentives and approvals.
- Self-Certification: Increased reliance on self-certification by exporters, reducing the need for physical inspections.
- Advance Authorization Scheme: Liberalization of the Advance Authorization scheme, allowing duty-free import of inputs for export production.
3. Technology Adoption & Green Exports
- Promotion of E-Commerce: Facilitating exports through e-commerce platforms, with simplified procedures and dedicated support for e-commerce exporters.
- Green Exports: Emphasis on promoting green technologies and sustainable export practices. Incentives for exporting environmentally friendly products.
- Digitalization of Trade Documents: Encouraging the use of blockchain and other digital technologies for secure and transparent trade documentation.
- Star Export Houses: Enhanced recognition and benefits for Star Export Houses based on their export performance and contribution to trade promotion.
4. Streamlining Logistics
- Integration with PM Gati Shakti: Alignment with the PM Gati Shakti National Master Plan for multi-modal connectivity, aiming to reduce logistics costs and improve efficiency.
- Development of Export Infrastructure: Focus on upgrading port infrastructure, developing logistics parks, and improving connectivity to export hubs.
- Trade Facilitation Measures: Implementation of trade facilitation measures as recommended by the World Trade Organization (WTO).
The FTP 2023-28 also introduces a new scheme, the Amrit Kal Scheme, which provides enhanced incentives to export-oriented units (EOUs) and Special Economic Zones (SEZs).
| Feature | FTP 2017-22 | FTP 2023-28 |
|---|---|---|
| Policy Duration | 5 years | 5 years |
| Export Target | $900 billion (achieved) | $2 trillion by 2030 |
| Focus | Incremental growth | Technology adoption, diversification, and sustainability |
| Digitalization | Limited | Extensive, with a unified digital platform |
Conclusion
The FTP 2023-28 represents a significant step towards enhancing India’s global trade competitiveness. By focusing on technology, ease of doing business, and sustainable practices, the policy aims to unlock India’s export potential and contribute to economic growth. Successful implementation will require effective coordination between various government agencies, active participation of the private sector, and continuous monitoring and evaluation of the policy’s impact. The emphasis on diversification and new markets is crucial for mitigating risks and ensuring long-term export sustainability.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.