ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Foreign Trade Policy 2023

A Road Map towards $2 Trillion Exports

Analysing the prospects of achieving $2 trillion worth of exports by 2030 based on India’s export performance from 2011–12 to 2020–21, the export value must grow at 13.23% per annum starting from 2021–22. However, due to saving–investment mismatch and currency depreciation, the actual volume of exports should grow between 17.53% and 19.70% per annum.

India’s Foreign Trade Policy (FTP), 2023 is based on four key pillars: (i) incentive to remission; (ii) export promotion through collaboration; (iii) ease of doing business and reduction in transaction costs; and (iv) emerging areas like e-commerce (Press Information Bureau 2023). The FTP 2023 is a step up from the earlier trade policies as it moves away from five years’ regime, and focuses more on continuity with in-built feedback mechanisms to adapt to new and emerging challenges. Furthermore, the policy effectively employs “nudge” by acknowledging exporters as partners in capacity building and development.

In total, FTP 2023 is consistent with India’s long-term focus of becoming a manufacturing and export hub. In today’s uncertain world, while some question the export-led development model, it still remains a tried-and-tested formula for growth and employment generation. The contemporary world demands simplicity of rules, leveraging technologies for compliance, defined role of exporters, and addressing emerging avenues/areas of export promotion. The FTP (2023) comprehensively addresses these issues in a cogent manner. Among its key objectives, the FTP 2023 aims to increase India’s total exports to $2 trillion by the end of 2030. Though adequate incentives and program­mes are in place to enhance India’s exports, to meet this ambitious aim, the goods and services sector must grow at 10.86% and 17.15% per annum respectively, from their 2021 level. This implies that the weighted growth of total exports must be 13.23% per annum from its 2021 level.

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Updated On : 10th Oct, 2023
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