The Government of India’s (GoI) new Foreign Trade Policy (FTP) 2023 breaks new grounds in enabling trade in India and provides a roadmap for growth in the coming years. Going beyond the existing policy of 2015-20 that was due to end this year, FTP 2023 will incorporate ease of doing business measures such as e-certificate of origin, online approvals without a physical interface, paperless filing and overall reduction in transaction costs. The policy also looks at boosting manufacturing and exports through ecommerce that has been identified as a key thrust area.
The incentives provided in this new policy are key to encouraging economic growth and providing a friendly environment for international trade. These measures will help strengthen India’s ecommerce sector and ensure that small exporters such as artisans, weavers and craftsmen have access to global markets through established channels such as Flipkart and Amazon. Moreover, the introduction of Dak Ghar Niryat Kendras in various parts of India will facilitate further collaboration between foreign post offices and ecommerce outlets, thereby helping micro-exporters reach international customers without having to invest in physical setup.
These new initiatives contained in the FTP 2023 mark a turning point in the Indian economy and the steps taken to promote export will benefit both the domestic and international market. With its focus on inter-ministerial coordination and facilitation of export, the FTP 2023 will likely open up new pathways for Indian companies to make their mark in the global market in the times to come.
The new legislation draws a lot of value from the efforts put in by the government, India-based companies as well as leading international players. While the policies will primarily benefit the overall business landscape of India, the special schemes and outreach initiatives for small exporters will also be of great help for the entrepreneurs and artisans, who are in need of such support and facilitation.
At the same time, the policy also focuses on the internationalisation of trade, which has the chance to revolutionise the trade scenario and the global economy, by making services simpler, efficient and more accessible. This will have wide-reaching implications, especially for MSMEs, boosting exports and driving economic growth in India.
The author is former executive director for India at the World Bank, who has worked extensively on promoting foreign trade and global economic actions. With a vast experience in policy, finance, education and business, he has been actively involved in setting up new opportunities for national and international trade, and guiding micro and small enterprises to grow their businesses. He has been a great proponent of the new Foreign Trade Policy (FTP) 2023, and continues to be a strong advocate of the measures to facilitate exports through ecommerce and deepen internationalisation of trade.