Despite the slowing economy the Foreign Trade Policy (FTP) 2023, which was announced by the Centre and will come into effect on April 1, 2023. The centre has also stated that by moving from an incentive-based system to one that is remission- and entitlement-based, India’s exports of commodities and services are expected to reach USD 2 trillion by 2030.
Santosh Sarangi, director general of foreign trade, predicted that India’s exports for this fiscal year (FY23) will hit $760–770 billion, up from $676 billion in FY22.
FTP recognized Faridabad, Moradabad, Mirzapur, and Varanasi as new Cities of Export Excellence (TEE) besides the 39 TEEs that are already in place.
The benefits of the FTP have been extended to exports from e-commerce, which are anticipated to increase by $200–300 billion by 2030.
Global trade is expected to slow down by 1%, according to the World Trade Organization. Meanwhile, as per the ministry, India’s nominal gross domestic product (GDP) will reach almost USD 3.5 trillion by March 2023.
There is new FTP attempts to internationalize the Indian rupee and enable settlement of transactions in the domestic currency.
The value cap for exports made via courier service has been raised from Rs 5 lakh to Rs 10 lakh per consignment. The new FTP aims to internationalize the Indian rupee and enable settlement of commerce in the national currency.
Sarangi, director general of foreign trade added that FTP 2023 is flexible and sensitive to changing trade conditions. The Department of Commerce is being reorganized, he added, in order to make it “future-ready.”
India’s major export commodities include petroleum products, gems and jewelry, textiles, and engineering goods. In recent years, India’s exports have shown a positive trend, driven by increased competitiveness, diversification of export baskets, and government initiatives to promote exports. India’s major export destinations include the United States, United Arab Emirates, China, Hong Kong, Singapore, and the United Kingdom. India is a significant player in both the merchandise and services export sectors and has been striving to increase its export performance through various initiatives such as the Make in India campaign, improving logistics infrastructure, and enhancing trade relations with other countries.
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