Introduction:
Welcome back to Track Grade B! In this blog post, we will discuss the major highlights of India’s recently released Foreign Trade Policy (FTP) 2023. The new FTP aims to provide continuity and stability in India’s export-oriented policies, with a focus on ease of doing business, reduction in transaction costs, and the promotion of exports and e-commerce. Let’s dive into the key changes and features of the new FTP.
Permanent Policy with Updates:
Unlike the previous FTP, which had an end date, the new FTP 2023 is designed to be a permanent policy framework. This ensures stability and allows for updates and revisions as and when required, without the need for a fixed time limit. The government aims to provide continuity in export-related policies and adapt to changing economic scenarios effectively.
Digitalization and Streamlined Processes:
One of the significant changes in the new FTP is the emphasis on digitalization and online processes. Approvals, certifications, and applications are now accessible online, eliminating paperwork and expediting the export process. This move towards digitalization aims to simplify trade procedures and reduce the time and effort required for exporters.
Incentives to Remission:
The new FTP shifts the approach from incentives to remission. Instead of providing incentives upfront, the focus is on remitting taxes and duties paid on exported products. The government aims to encourage exporters to perform first and then provide remission for the taxes paid on the exported goods. This change aims to align incentives with actual exports, ensuring greater accountability and efficiency in trade activities.
Export Promotion Schemes:
The FTP 2023 introduces several export promotion schemes to support different sectors. One such scheme is the Export Promotion Capital Goods (EPCG) scheme, which allows duty-free import or indigenous sourcing of capital goods for manufacturing purposes. Under this scheme, exporters need to achieve a certain value of exports within a specified time frame.
Simplified Application Processes:
The new FTP emphasizes the ease of doing business by simplifying application processes. Trade facilitation apps provide exporters with information on foreign trade policies, export-import statistics, and the status of applications. The government has also introduced automatic system-based approvals for FTP applications, reducing processing time and streamlining the application process.
Reduced Application Fees:
To support Micro, Small, and Medium Enterprises (MSMEs), the FTP 2023 offers reduced application fees for advanced authorizations and EPCG schemes. This reduction in fees aims to alleviate the financial burden on MSMEs and encourage their active participation in international trade.
Process Re-engineering:
The new FTP emphasizes process re-engineering to enhance efficiency and effectiveness in export-related activities. It aims to simplify and digitize various government processes, making them paperless and enabling online processing of applications. These changes aim to reduce bureaucratic hurdles and facilitate a smoother export experience for businesses.
Conclusion:
India’s new Foreign Trade Policy (FTP) 2023 focuses on providing continuity, stability, and ease of doing business for exporters. With digitalization, streamlined processes, and a shift towards remission-based incentives, the FTP aims to support exporters and promote India’s economic growth through increased exports. The introduction of export promotion schemes, reduced application fees, and process re-engineering further demonstrate the government’s commitment to creating a conducive environment for international trade. As India moves forward with its ambitious export targets, the new FTP sets the stage for Indian businesses to explore new markets and excel on the global stage.
Note: The content of this blog is based on the provided script and information.
