Introduction:
Hello, readers! Today, I would like to delve into the exciting topic of the new Foreign Trade Policy (FTP) unveiled on March 31, 2023, by the honorable Commerce Minister. As the founder of Navitas International Trade and Engagement Platform, an organization dedicated to assisting Indian businesses in exploring new international markets, I am thrilled to discuss the opportunities this policy presents for Indian enterprises to expand their reach and thrive in global markets. So, let’s dive into the key highlights of the new FTP.
A Dynamic and Flexible Approach:
Unlike its predecessors, the new FTP does not have an end date, granting the government the flexibility to update it anytime. This dynamic approach ensures that the policy can adapt to evolving trade dynamics and address emerging challenges effectively. Moreover, the Department of Commerce itself is undergoing a transformation to align with the FTP’s objectives, signaling a comprehensive and integrated approach to support Indian businesses.
Digitalization and Streamlined Processes:
One of the most significant changes in the new FTP is the emphasis on digitalization and streamlining trade processes. Approvals and certificates of origin are now accessible online, reducing paperwork and expediting the export process. Additionally, the policy introduces paperless filing of export applications and discharge applications, simplifying the bureaucratic procedures for businesses.
Reduced Fees and Export Promotion Incentives:
The new FTP aims to support Micro, Small, and Medium Enterprises (MSMEs) by reducing fees for advanced authorizations and Export Promotion Capital Goods (EPCG) streams. This reduction in fees will alleviate the financial burden on MSMEs, enabling them to engage more actively in international trade.
Export promotion incentives have also been revisited to encourage businesses to enhance their export performance. Now, even enterprises with a lesser export value can achieve a coveted five-star rate exporter status, recognizing their contributions to India’s export growth. Cross-border trade has also received a boost, allowing businesses to engage in transactions between countries without the need for physical presence in India.
District Export Hubs and E-commerce Opportunities:
To foster regional development, the new FTP focuses on establishing district-level export hubs. By building capacity, infrastructure, and logistics at the district level, the government aims to facilitate export activities and provide support to the “One District, One Product” (ODOP) initiative. This decentralized approach enables businesses to operate and expand without being solely reliant on state or national-level structures.
The policy also acknowledges the growing significance of e-commerce in international trade. It introduces various support systems for e-commerce exports, particularly in the business-to-consumer (B2C) segment. The increase in limits per consignment and the establishment of foreign post offices contribute to facilitating and promoting e-commerce exports. Dedicated e-commerce export hubs will further enhance the ecosystem and opportunities for businesses in this sector.
Manufacturing Support and Enhancements:
Recognizing the importance of manufacturing in boosting exports, the new FTP offers a range of support systems to enhance manufacturing capabilities. Additionally, amnesty is provided for export application defaults under EPCG schemes, providing relief to those who have faced challenges meeting export obligations.
The policy also focuses on upgrading and revamping the special chemicals, organisms, materials, equipment, and technologies (SCOMET) list. These enhancements aim to align the SCOMET regulations with international standards and facilitate smoother export processes in these sectors.
Conclusion:
The new Foreign Trade Policy demonstrates the Indian government’s commitment to promoting an export-friendly environment and achieving the ambitious goal of $2 trillion in exports (both products and services) by 2030. With its digitalization initiatives, reduced fees, export promotion incentives, district-level focus, e-commerce support, and manufacturing enhancements, the FTP presents a multitude of opportunities for Indian businesses to expand their global footprint.
If you are interested in exploring how Navitas can assist you in navigating the new markets and preparing your business for exports, I encourage you to take advantage of our Export Readiness Evaluation. Let us embark on this exciting journey together as we harness the potential of the new Foreign Trade Policy and unlock the doors to international success. Until next time, thank you and goodbye.
Note: The content of this blog is based on the provided script and information.
