Approach:      

Introduction: Mention the need for a new foreign trade policy for 2023.

Body:

• Highlight the new approach to this policy.
• Also, discuss the significant provisions of the bill.

Conclusion: give some suggestions to ensure a boost to foreign trade

Answer:

Due to the COVID epidemic and the fragile geopolitical situation, the FTP 2015-20, which was set to expire on March 31, 2020, has been extended until March 31, 2023. During this period, India's export performance for both goods and services has reached new heights. Thus, the Foreign Trade Policy 2023 is launched to ensure policy continuity and provide a flexible framework.

A new approach to foreign trade policy:

1. Unique FTP Methodology: From Incentives to Tax Abatement
2. Greater Trade facilitation through technology, automation, and ongoing process reengineering
3. Promotion of exports via collaboration: Exporters, States, Municipalities
4. Concentrate on Emerging Areas - E-Commerce Exports, Developing Districts as Export Hubs, Streamlining SCOMET Policy, etc.

Key FTP Features:

1. Several E-initiatives were launched, ease of doing business was promoted, and substantial reduction in transaction costs.
2. The policy identifies four new towns of export excellence (tee) – Faridabad, Moradabad, Mirzapur, and Varanasi – in addition to the existing 39 tees.
3. The FTP outlines a roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, bookkeeping, returns policy, and export entitlements.
4. Development of the Districts as Export Hubs project.
5. Promotion of manufacturing and electronic commerce exports.
6. The importance of simplifying the SCOMET( Special Chemicals, Organisms, Materials, Equipment, and Technologies) Licensing Procedure which aims at streamlining the export of dual-use items.
7. Special one-time Amnesty Program for Export Obligations Default.
8. The dairy industry will be excused from maintaining average export obligations under the new foreign trade strategy, and a particular advance authorization procedure has been extended to textiles and clothing.

Future steps required to boost foreign trade:

1. Expanded collaboration with states and districts to boost exports at the local level.
2. Using the comparative advantage of India over several commodities in a more standardised manner by developing an adequate policy framework.
3. Concentrate on E-commerce exports to simplify procedures and facilitate export growth in the E-commerce market.
4. Sector-specific objectives to attain the goal of a trillion dollars in exports of goods by 2030.
5. Implementation of export promotion schemes should be made more precise and local, rural cottage industries along with MSMEs must be involved.
6. Consultative framework for resolving trade and industry concerns.
7. Work toward making the Indian Rupee a worldwide currency and facilitating international trade settlement in INR.
8. Future-proofing the Department of Commerce via reorganization.

Further, the foreign trade policy should be dynamic and sensitive to the evolving trade environment to ensure India can take advantage of the evolving uncertain environment for its growth to become a Vikasit Bharat by 2047. This new FTP can surely unleash India’s potential to become a $5 trillion economy in the near future.