Foreign trade policy 2023 -2028
Introduction in
Foreign trade policy
1. what is foreign trade policy?
"Foreign trade policy is the combination of word first is foreign trade and second is policy foreign trade. It is the exchange of goods and services between nation .Goods can be defined as finished product,as intermediate goods used in producing other goods,or as agricultural products and food stuffed.
..... Foreign trade policy...
India is know as one of the most important and emerging players in the global economy.its foreign trade policy and government reforms have made it a significant destination for foreign investment around the world. Also, technological and infrastructure developments bring carried out all over the country enable efficient trade and economic practice. For the successful economic development of a country ,vigorous foreign trade policy is of great importance. Therefore,india adopted a foreign trade policy known as the exim policy or the export -import policy.
With the help of foreign trade policies,a country can lead to equality of pricing to ensure a stable demand and supply situation within the economy.
Foreign trade policy also enable a nation to import certain products at the time of a natural calamity and therefore manage scarcity when demand is high by providing better quality and quantity of goods . It also assists in raising the standard of living and making commodities available at a lower cost.
Therefore the foreign trade policy in india is a complete Policy to enhance the position of India in the international market and creat benifits for all.
Roll of FTP .
✓ To enable substantial growth in export from India and import to india to boost the economy.
✓ To at least double the percentage share of global merchandise trade conducted within the next five year .
✓ To improve the balance and payment terms.
✓ To act as an effective instrument of economic growth by creating employment opportunities for the citizens; the large the expansion of trade activities,the more the workforce required.
✓ To provide a sustainable growth by giving access to essential raw material for production and other components, consumables and capital goods required for increasing production and providing efficient service.
✓ To raise the technological capacity for production and cost - effectiveness of industry and service,thereby improving their competitive strength in comparison to other countries ,and to encourage the accomplishment of internationally accepted standards of quality .
✓ To provide buyer or clients with high quality goods and services at globally competitive rates and quality.
Canalization '-an important feature of foreign trade policy under which specific class of goods can be imported only by designated agencies.
✓ creation of opportunities by engaging in good and ethical practices.
✓ Accelerating the economy from low - level economic activities to high level economic activites by making it a globally oriented and vibrant economy.
✓ To derive maximum benifits from expanding the global market and seizing the best opportunities available.
✓ making policies that favour ease of doing business and e - governance.
✓ To allow for hassle free transaction for both import and export
✓ Reducing the interference between the exporter and directorate general of foreign trade by reducing the number of Export documents.
✓ To allow the import of technology and equipment's which may help in achieving better' international standard of quality and reduce the cost of production.
✓ Established the advance licensing system for important goods needs for manufacturing various goods for export. An advance licence is issued by the director general foreign Trade to allow duty free import of inputs which are physically integrated with the Export product ( making normal allowance for wastage ).
✓ To allow the import of certain goods as listed in the open general licence s kind of Export licence which is issued by government to domestic supplier.
✓ Export import rules and regulations.
Indian's foreign trade policy i.e Exporter and importer are regulated by foreign trade policy notified by central government in excercise of power conferred by section 5 of foreign trade ( devlopment and regulations) act 1992 import and export of all goods are free except for the items regulations by the exim policy or any other law currently in force.
Recent foreign trade policy (2023 -2028)
• The foreign trade policy 2023 -2028 announced on March 31,march 2023 replace the earlier policy of 2015 -2020 ,which had been extended multiple time due to the COVID 19 pandemic.The new policy reflected a shift from an incentive -based regime to a remission and facilitation based approach.
Key highlights of FTP (2023-2028).
1. No end date : The Policy is open - ended without a fixed end year. It now a dynamic and flexible documents updated as per global trends.
2. Digitalization and automation:
• 100 % digital processing of applications.
• Reduction in processing time to 1 day for many services.
3. Towns of export excellence (TEE)
• new town added faridabad (apparels) , moradabad.(Handicrafts), mirzapur (handmade, carpets) varanasi (handmade looms .& handicrafts).
• TEE receive funding under
4. District As exporter hubs (DEH) focus on identifying export - worthy product and services from each district.
5. Streamlining scheme.
• Remission of duties and taxes on Export product (Rodttep) refund duties and taxes not refunded under other merchandise.
• Revised sei framework of replace older .sei act with a new one under the development of enterprise and service HUB (DESH) bill.
6. paperless trade grater use of digital platform likes.
DGFT portal e - certificate of origin n
7. Green and sustainable focus: incentive for environmental friendly and sustainable product.
8. Case of doing business.introduction of automatic approvals, simplified compliance norms.
Major Export promotion schemes under.FTP...
1. MEIS ( Now phase out):
• provide duty credit scrips to Exporter of specified goods.
• Replaced by Rodtep due to two compatibility issues
2. SEIS
• for service Exporter in sector like it ,health education etc.
• Incentive based on net foreign exchange earned.
3. Rodtep (2021 onward )
• Reimburse embedded taxes and duties not refunded under other scheme.
• WTO complaint replacing MEIS for goods export.
4. EPCG SCHEME
5. ADVANCE AUTHORISED SCHEME
6. TMA ( TRANSPORT AND MARKETING ASSISTANCE)
7. Towns of Export Excellence (TEE)
The government wants to shine a spotlight on towns that have strong export industries. These towns, called Towns of Export Excellence, get special support like better infrastructure and help accessing global markets. The goal is to make these towns export powerhouses by encouraging local industries and clusters to grow further.
8. Status Holder Schem
This scheme is all about recognizing successful exporters. If a business reaches a certain level of export performance, it’s given a “Status Holder” tag like One Star, Two Star, all the way up to Five Star. With this status come benefits like faster clearances, fewer paperwork hassles, and easier access to other export incentives.
9. Export Oriented Units (EOU) Scheme
This scheme supports units that export everything they produce. In return for committing to exports, these units get perks like duty-free imports of raw materials and machinery, along with simpler tax procedures. It's designed to encourage businesses to focus fully on international markets.
10 . Market Access Initiative (MAI) Scheme
The MAI scheme is about helping Indian exporters explore and grow in international markets. It provides financial support for things like market research, attending trade fairs, branding, and promotional campaigns. It’s especially useful for small and medium businesses looking to expand abroad.
export import..
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