By 2023, $2 trillion exports, payments in rupee: India unveils ‘dynamic’ Foreign Trade Policy

The Indian government unveiled its Foreign Trade Policy 2023 which seeks to boost merchandise and services exports by $ 2 trillion by 2030 from the current level of $765 billion, make Indian currency global and push for e-commerce exports.

Commerce minister Piyush Goel, who put forth India’s ambitious goal to become an exports powerhouse, on Friday said that the country is on course to achieve its exports target by 2030.

"We have to meet our exports targets going forward. We will achieve $2 trillion in exports by 2030, but it should not be that merchandise exports are outperformed by services exports," the minister said.

Director General of Foreign Trade (DGFT) Santosh Sarangi, who was present alongside the minister during a media interaction, said that India is likely to cross $765 billion merchandise and services exports in the financial year 2022-23, which ends on Friday. In 2021-22, the total exports were USD 676 billion.

The main aim of the FTP 2023 is to move away from 'incentive to remission' based regime; encourage collaboration between exporters, states, districts and Indian Missions; reduce transaction cost; and develop more export hubs, the minister said.

The FTP 2023 has been touted to be a dynamic and responsive trade policy without any end date, unlike the previous practice of launching five-year FTPs.

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"We have ensured there is no end date to this policy, it will be updated from time to time," said DGFT Santosh Sarangi said.

Moreover, the FTP 2023 seeks to make the Indian Rupee the global currency in settling international trade payments.

"If there are countries where there is currency failure or dollar shortage, we are willing to trade in the rupee with them," said Commerce Secretary Sunil Barthwal.

He also stressed that Indian exporters will have to become globally competitive and need not depend on subsidies.

The policy specifically extends FTP benefits to e-commerce exports which are estimated to grow to $200-300 billion by 2030.

To streamline e-commerce export facilitation, guidelines are being formulated in consultation with other ministries.

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