Podcast
Questions and Answers
What is the target increase in India's exports by 2030?
What is the target increase in India's exports by 2030?
$2 trillion
The new Foreign Trade Policy has a sunset date.
The new Foreign Trade Policy has a sunset date.
False
The schemes sanctioned under the new Foreign Trade Policy will be time-bound.
The schemes sanctioned under the new Foreign Trade Policy will be time-bound.
True
The Foreign Trade Policy 2023 focuses on internationalization of trade in US dollars.
The Foreign Trade Policy 2023 focuses on internationalization of trade in US dollars.
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What does RODTEP stand for?
What does RODTEP stand for?
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The EPCG Scheme allows for 0% customs duty import of capital goods for domestic production.
The EPCG Scheme allows for 0% customs duty import of capital goods for domestic production.
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What does AAS stand for?
What does AAS stand for?
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The Foreign Trade Policy 2023 is based on the principles of 'trust' and 'transparency' with exporters.
The Foreign Trade Policy 2023 is based on the principles of 'trust' and 'transparency' with exporters.
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What does Niryat Bandhu mean?
What does Niryat Bandhu mean?
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The Niryat Bandhu Scheme has a component for the promotion of e-commerce.
The Niryat Bandhu Scheme has a component for the promotion of e-commerce.
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The Foreign Trade Policy 2023 aims to give a Star rating/Status to exporters based on their export performance.
The Foreign Trade Policy 2023 aims to give a Star rating/Status to exporters based on their export performance.
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Which of the following is NOT a benefit of the Foreign Trade Policy 2023?
Which of the following is NOT a benefit of the Foreign Trade Policy 2023?
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Study Notes
India's Role in Trade Growth and FTP 2023
- India's exports of goods and services increased from $535 billion (2019-20) to $773 billion (2022-23)
- High growth in engineering goods (especially electronics) exports is a key driver
- Export policies (RODTEP, ROSCTL) remit taxes, aiding working capital
- Schemes like EXIM scrip and EPCG provide export subsidies
- Improved port infrastructure (24/7 online clearance at 18 ports) reduces compliance burdens
- Agricultural exports exceeding $50 billion
- Free trade agreements with UAE and Australia boost exports
- High oil and metal prices also contribute to export value
Challenges to India's Trade
- Global deglobalization and protectionism pose challenges
- Inefficient manufacturing practices limit competitiveness
- Lack of diversified markets and export baskets hinders growth
- Bureaucratic hurdles at ports and high logistical costs are major obstacles
- Currency overvaluation impacts export competitiveness
- Inverted duty structures create hurdles
Way Forward for India's Trade
- Implementing reforms in labor laws and land acquisition
- Expanding into diversified markets (East Asia, Pacific, West Asia, etc.)
- Improving infrastructure to reduce logistical costs
- Maintaining a stable real exchange rate
- Providing e-commerce support to exporters
Foreign Trade Policy 2023
- Aims to increase exports from $750-$760 billion to $2 trillion by 2030.
- The policy is not time-bound, but schemes under the policy are.
- Aims to internationalise trade in Rupees
- Remission of Duties and Taxes on Exported Products (RODTEP) to provide refunds to exporters
- Export Promotion Capital Goods (EPCG) Scheme (0% customs duty on machinery for export production)
- Advance Authorisation Scheme (AAS): 0% customs on import of raw materials
- One-time Amnesty Scheme for defaulting exporters
- Establishing Export Hubs (DEH) along with existing (and new) "Export Excellence Towns"
- Encouraging digital trade through Niryat Bandhu Scheme (NBS)
- Cross-border trade facilitation through Dak Ghar Niryat Kendras and FPOs
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Description
Explore India's remarkable journey in trade growth from 2019 to 2023, with exports soaring from $535 billion to $773 billion. Learn about crucial factors such as export policies, improved port infrastructure, and challenges like global protectionism and manufacturing inefficiencies that affect competitiveness.
