India’s export has grown by 74.7 per cent which is more than double the rate at which world’s export (28 per cent) has grown since 2016. The Foreign Trade Policy (FTP) 2015-20 was extended till 31.03.2023 due to COVID pandemic and volatile geo-political scenario. During this extended period, along with substantial rationalisation of export oriented schemes, there has been multi-fold growth of merchandize and services export from India.

Under FTP 2015-20 itself, DGFT, a facilitator of import and export, has created common digital platform for e-RCMC, e-Certificate of Origin, Quality Control and Trade Disputes. Additionally, there is 24X7 facility for auto-generation of e-IEC. A Trade Facilitation App, Contact Center and Helpdesk services and integration with National Single Window System, etc. have also been enabled under FTP 2015-20.

The ‘Approach of FTP 2023’ announced on March 31, 2023 is to move from incentive based schemes (MEIS / SEIS) to remission based schemes (i.e. RoDTEP / RoSCTL) and duty exemption schemes like Advance Authorization, DFIA and EPCG have been continued. The focus is on promoting export and strengthening ease of doing business even more by way of on-line approvals. A game changer initiative has been the international trade settlement in Indian currency. A welcome announcement under FTP 2023 is that it grants export benefits and allows export obligation fulfillment even when export realization is in Indian currency. FTP 2023 introduces “merchanting trade”, whereby, the merchant trader (based out of India) buys from one country and supplies to another country and the goods does not touch Indian border.

Along with the new FTP, in the interest of trade and industry, Amnesty scheme for one-time settlement of default in export obligation by Advance Authorization and EPCG authorization holders has also been announced. Furthermore, export performance threshold has been amended so that higher level of recognition can be granted to exporters through Status Holder scheme. Lastly, FTP 2023 has taken several steps to boost manufacturing so that India can increase its share in global supply chain in exports and contribute towards AtmaNirbhar Bharat mission. (The author is a practising Chartered Accountant)