Mar 31, 2023
India aims to triple exports to $2 trillion in next seven years
Mar 31, 2023
India has aimed to triple its foreign trade in the next seven years. The government has sought to boost the country's exports to $2 trillion by 2030 in its new Foreign Trade Policy 2023, which was announced on Friday. The government has estimated total exports $760-770 billion during current fiscal 2022-23 which is going to end today. India has shifted its policy of promotion from incentives to remission and entitlement-based regime.
Commerce and Industry Minister Piyush Goyal unveiled FTP 2023 which will come into effect from April 1, 2023. Goyal exuded confidence that the export target of $2 trillion by 2030 will be met. He stressed that any industry cannot succeed only on the basis of subsidy or crutches. In the coming days, the idea of exports will change in the country.
Unlike the practice of announcing five-year FTP, the latest policy has no end date and will be updated as and when needed, informed Director General of Foreign Trade Santosh Sarangi in a media briefing in New Delhi.
Sarangi also said that India is likely to end this fiscal with total exports of $760-770 billion as against $676 billion in 2021-22. The last five-year FTP 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, viz. Faridabad, Moradabad, Mirzapur and Varanasi in Uttar Pradesh. Currently, there are 39 TEEs in the country.
The FTP benefits have been extended to e-commerce exports, which are estimated to grow to $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, as per the authorities.
The policy also seeks to make the Indian rupee a global currency and allow international trade settlement in the domestic currency. Commerce Secretary Sunil Barthwal said that India is ready to trade in Rupee with countries which are facing currency failure or have dollar shortage. The government is focusing on strengthening the rupee payment system. Changes have been made in the FTP to allow international trade settlement in the Indian Rupee with a view to making INR a global currency.
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