The new Foreign Trade Policy (FTP) announced by the Indian government in March 2021 has been welcomed by experts from across the country. It is aimed at boosting India’s export growth by focusing on sectors such as e-commerce, batteries for electric vehicles (EVs), green hydrogen, garments, and farm equipment. The policy hopes to push rupee trading and India’s export dollars to a target of USD 2 trillion by 2030.
There are several benefits associated with the new policy. Rumki Majumdar, Economist at Deloitte India, explains that the policy gives special attention to manufacturing and export sectors which can be beneficial for the country in the long run. It is also encouraging rupee-based trading which can help India become more resilient to global trade shocks and give it better negotiating capabilities.
Shashi Mathews, Partner at IndusLaw, points out that the policy focuses on digitising and re-engineering the existing processes to make the system more efficient. Exporters of batteries for electric vehicles, green hydrogen, farm equipment, and the garment sector are likely to benefit the most.
Sanjay Budhia, Executive Chairman of the Confederation of Indian Industry (CII) National Committee on Exports and Imports, points out that the new policy has provisions to reduce export performance thresholds. This will enable far more exporters to obtain higher status and lower their transaction costs. The policy’s clear focus on decreasing transaction costs, internationalizing the Indian rupee, and improving e-commerce exports can be revolutionary in helping India become a leader in the global exports landscape.
The CII is a national industry body that was established in 1895 and represents industry in India. It has a primary focus on facilitating and promoting industrial growth in the country, and actively works towards influencing policy that can translate into growth in all sectors.
Sanjay Budhia has more than 30 years of experience in the trade and commerce industry. After joining the CII in 1989, he held many important positions, eventually leading to his current appointment as Chairman of the National Export and Imports committee. He has been pioneering the organisation’s foray into global markets and path-breaking trade facilitation initiatives. Through his guidance and leadership, the CII seeks to achieve it’s aspirational target of helping India become a leading global exporter.
The new Foreign Trade Policy is expected to drive India’s export growth in a big way. It will re-ignite business sentiment and provide benefits to various sectors, including e-commerce, batteries for EVs, green hydrogen, garment production, and farm equipment. The initiatives implemented in the policy to reduce costs, digitize processes and internationalize the Indian rupee are likely to transform India’s export industry and help the country become a leader in global markets.