New foreign trade policy aims $2 tn exports

New Delhi: The Centre on Friday unveiled new foreign trade policy for the period 2023 to 2028 with the aim of boosting exports to $2 trillion by 2030, even as trade has been impacted due to fluid geopolitical situation and disrupted supply chains.

Commerce Minister Piyush Goyal unveiled the policy in the presence of industry representatives and top officials of the ministry.

"I am confident that India's trade will touch $2 trillion exports by 2030," Goyal said after unveiling the policy.

The new foreign trade policy will encourage trade in Indian rupee. Commerce Secretary Sunil Barthwal said that the thrust of the policy is that India is ready to trade in rupee with countries facing currency failure or dollar shortage.

While the new policy was expected to be in place until 2028, the Directorate General of Foreign Trade (DGFT) Santosh Sarangi speaking on the occasion, said that there is no end date to the new foreign trade policy and it will be updated as and when required.

The new foreign trade policy shall mark a move from incentives to remission, will focus on export promotion through collaboration with exporters, states, districts, and Indian Missions, will promote ease of doing business and focus on emerging areas like e-commerce and export hubs. In a presentation at the event, the Commerce Ministry said that WTO's global trade forecast predicts a slowdown of one per cent in global trade in 2023.

It further informed that by March 2023, the nominal GDP of India will be around $3.5 trillion. India is likely to cross $765 billion in exports in 2022-23, Sarangi said further. Under the policy, the dairy sector would be exempted from maintaining average export obligation. A special advance authorisation scheme has been extended to the apparel and clothing sector, DGFT said.

Value limit for exports through courier services has been increased to Rs 10 lakh from Rs 5 lakh per consignment. The foreign trade policy encourages ecommerce exports, which are expected to grow to $ 200-300 billion by 2023. The policy also introduces an amnesty scheme for one-time settlement of default in export obligation, Sarangi said.,The country is likely to end 2022-23 with total exports of $760 billion as against $676 billion in 2021-22.