Towards a $2 Trillion Goal: Initiatives and Innovations in India’s FTP 2023

India Trade Policy 2023

India’s FTP 2023 marks a transformative step towards achieving a bold $2 trillion export target by 2030, underscoring the country’s ambitious goals in the global trade arena. This comprehensive policy, rooted in four key pillars—Incentive to Remission, Export Promotion through Collaboration, Ease of Doing Business, and Emerging Areas—is poised to redefine India’s trade dynamics. It leverages the continuity of time-tested schemes while adeptly responding to contemporary needs, introducing innovative measures like an Amnesty Scheme for exporters, fostering new Towns of Export Excellence, and enhancing the Status Holder Scheme​​.

E-commerce Exports: A Central Focus in India Trade Policy 2023

Crucially, FTP 2023 places a strong emphasis on e-commerce exports, aspiring to contribute at least 10% towards the $2 trillion target. This policy shift from an incentive-based regime to a remission and entitlement-based regime aligns with World Trade Organization rules, enabling India to compete more effectively globally. A separate chapter in the FTP dedicated to digital commerce extends all policy benefits to e-commerce exports, with an increased value limit for exports via courier service and a strategic plan to support the sector’s growth to $200-300 billion by 2030​​​​.

Leveraging Technology in Trade: A Key Strategy in FTP 2023

India Trade Policy 2023

A key feature of the FTP 2023 is its focus on leveraging information technology to streamline e-commerce export facilitation. This includes the implementation of IT systems across various government departments to enhance export processes, the establishment of designated e-commerce export hubs with advanced warehousing facilities, and the introduction of Dak Ghar Niryat Kendras to bolster cross-border e-commerce. These measures not only aim to simplify the export process but also to empower artisans and MSMEs to reach international markets efficiently​​​​.

Pioneering Rupee Trade: A Novel Approach in India’s FTP 2023

The FTP 2023’s approach to rupee trade is equally groundbreaking, promoting the rupee as an international currency. This initiative, backed by the Reserve Bank of India’s approval for banks to open vostro accounts for rupee trade settlements, demonstrates India’s commitment to fostering a robust and versatile trade ecosystem. Additionally, the policy allows for merchanting trade, where Indian intermediaries can engage in transactions without the goods physically touching Indian ports, subject to RBI guidelines and specific goods categories​​.

Empowering Artisans and MSMEs: E-commerce Export Opportunities

An Artisans

Credit: inc42.com 

The policy’s thrust towards e-commerce is bolstered by a wide range of outreach and training activities to enhance the capacity of artisans, weavers, garment manufacturers, and others, encouraging them to engage with e-commerce platforms. This is supported by the significant role of established platforms like Flipkart and Amazon, which have facilitated Indian exporters’ access to global markets. The involvement of these platforms has led to more than 100,000 Indian exporters reaching international customers, showcasing a vast array of Made in India products worldwide​​.

Decentralizing Exports: Developing District Hubs and Country Branding

Furthermore, FTP 2023 focuses on decentralizing and diversifying the export base by developing districts as export hubs and emphasizing country branding over individual firm branding. This strategy is particularly relevant for small and medium enterprises that form a major part of India’s export basket. The policy also addresses challenges like the lack of clarity in return policies for international transactions and the need for improved compliance certification, recognizing these as areas for future growth and improvement​​.

India’s Visionary Step in Global Trade

India's FTP 2023

Credit: NDTV 

India’s FTP 2023 is a visionary document strategically designed to elevate India’s position in global trade. By focusing on key areas like e-commerce, rupee trade, and decentralized export hubs, combined with an emphasis on ease of doing business and technological integration, the policy paves the way for India to achieve its ambitious $2 trillion export goal by 2030. The policy’s success hinges on its ability to adapt and respond to the evolving global trade environment, ensuring that India remains a competitive and dynamic player in the international arena.

Overseas Business Consultants: Pioneering India Trade Policy 2023

Overseas business consultants are pivotal in realizing the objectives of India’s Foreign Trade Policy (FTP) 2023. These consultants are instrumental in bridging the gap between Indian exporters and global markets, offering expertise in navigating complex international trade landscapes.

Their role includes advising on compliance with global trade norms, facilitating connections with international buyers, and providing insights into foreign market trends. By leveraging their global networks and knowledge of foreign trade requirements, these consultants are crucial in helping Indian businesses adapt to the dynamic demands of global trade, thus playing a key role in achieving India’s ambitious $2 trillion export target by 2030.

Overseas Business Consultant

In essence, overseas business consultants are not just facilitators but catalysts in India’s journey towards becoming a major player in the global export arena under the FTP 2023 framework. They help in demystifying the complexities of international trade for Indian exporters, especially in the context of the policy’s focus areas like e-commerce exports, rupee trade, and decentralized export hubs. Their expertise is invaluable in ensuring that Indian exporters are well-equipped to meet the challenges and seize the opportunities presented by the evolving global trade environment.

If you are looking for an overseas business consultant to help you deeply understand FTP 2023 and leverage it to establish a foreign business entity, the GAFI Chamber of Commerce is your destination. Book your consultation today!

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