The new Foreign Trade Policy 2023 was unveiled by the government on March 31 in an effort to increase exports in the face of sluggish global commerce. The goal of India’s new foreign trade strategy is to increase its exports of products and services to $2 trillion by 2030.
The Directorate General of Foreign Trade (DGFT) today stated that the new foreign trade policy has no expiration date and will be updated as and when necessary, even though it was initially anticipated to be in effect until 2028.
With the new foreign trade policy, incentives will give way to remissions, export promotion will be prioritised through partnerships with exporters, states, districts, and Indian missions, ease of doing business will be promoted, and emerging sectors like e-commerce and export hubs will receive special attention. In a presentation at the occasion, the ministry mentioned that the WTO’s estimate for world trade indicates a one percent slowdown in trade in 2023. It also noted that India’s nominal Economy would reach about US $3.5 trillion by March 2023.
The current foreign trade policy (2015–20) will no longer be in force as of today. Although the policy’s term was set to expire in March 2020, lockdowns brought on by the COVID-19 pandemic caused it to be prolonged multiple times.
According to reports, this fiscal year’s exports are expected to reach $760 billion, up from $676 billion in 2021–22.
It should be mentioned that the ongoing Russia-Ukraine conflict has caused supply chain disruptions, which have negatively impacted India’s trade.
When earlier Ajay Sahai, director general and CEO of the Federation of Indian Export Organizations (FIEO), stated to CNBC-TV18 on March 29 that while 2021 was the best year for foreign trade, 2022 saw a slowdown.
He asserts that decreased demand and lower input costs are having an effect on exports. However, he said that overall difficulties are likely to persist. He anticipates that global commerce may improve in the third quarter of the fiscal year.
The focus should be on advancing the merchandise sector and realigning the value chain, he says, and he anticipates better travel and medical tourism statistics the following year.
Sahai asserts that the tech industry is where the majority of the world’s commerce is headed. Exports will include PLI.
