The government is expected to release the Foreign Trade Policy (FTP) by the end of this financial year, which will have a five-year roadmap to enhance the country’s trade.
After the extension, the current FTP (2015-20) will expire on March 31, 2023. In September last year, the government extended the existing FTP for six months due to adverse global economic conditions.
Experts are of the opinion that FTP should have a two-pronged strategy – encouraging sunrise sectors and incentivising labour-intensive sectors such as textiles and leather.
The focus of the new policy is expected to be on trade promotion through Free Trade Agreements (FTAs), import substitution, import diversification, marketing via Indian missions, nudging every sector through respective ministries and involving states in the promotion of exports.
As per media reports the new export target defined by India in its new FTP, may be US $ 2 trillion by 2030. This year India’s overall exports are estimated to grow by at least 12 per cent, to at least US $ 750 billion.
It is being said that the upcoming FTP will seek to handhold MSMEs to build their financial capabilities, set up special zones for e-commerce exports and develop new mechanisms to support services related to Artificial Intelligence (AI) and Internet of Things (IOT).
“We are working on ways to facilitate e-commerce exports and discussions are on to setup e-commerce zones on the lines of Software Technology Parks of India,” said one official, adding that detailed strategies to boost e-commerce and build further on Brand India are being contemplated. The e-commerce zones could provide all facilities in one place, including banks, fintech companies, customs clearance and logistics and courier services, along with a separate space for warehousing.
