E-commerce will add $200-$300 billion to export basket, says Sakthivel
Welcoming the new Foreign Trade Policy 2023 (FTP23) announced on 31 Mar 2023, FIEO President, Dr A Sakthivel said it is designed to work towards making Indian Rupee a global currency, adding further impetus to India’s emergence as a global trading hub.
The shift this time has been from incentive-based regime to a remission and entitlement-based regime, he noted.
Terming this as a dynamic FTP without an end date, FIEO President added that it maintains policy continuity with a window for the trade and industry to ensure a responsive and nimble approach keeping in view the needs and requirements of the trade in tune with the emerging situation in the world trade.
Four new towns of export excellence have been added to the existing 39 giving thrust to cluster based economic development, noted Dr Sakthivel, reiterating that the policy has been initiated to create an institutional mechanism at the State and District level to promote identified products and services, which will further help in giving boost to the MSMEs and creation of employment across all sectors of economy.
Capacity building, infrastructure and logistics development through training, handholding, outreach programmes, creation of testing facilities and connectivity for exports will help in further value-addition thereby making Indian products and services more competitive across the globe.
“Facilitation of E-commerce exports will help in further adding about US$200-$300 billion exports to our basket,” he underlined.
The President FIEO also requested the Government that 3-6 months transition period may be provided, whenever a major change is notified in the Foreign Trade policy, so that the existing contract can be executed factoring the prevailing benefits.
“The Foreign Trade Policy (FTP) will play a pivotal role in realizing the target of US$2 trillion exports (for merchandise and services) by the year 2030,” added FICCI President Subhrakant Panda, welcoming the policy.
“By doing away with the sunset clause and end-period, the FTP will allay apprehensions of the exporters and importers and ensuring stability, continuity and certainty amidst the changing geo-political environment,” he said.
Panda welcomed the introduction of new elements in the foreign trade policy, especially E-commerce, Internationalization of India Rupee, District Exports Hub, Merchanting Trade Reform and special one-time amnesty scheme are welcome steps.
These measures will strengthen the trade ecosystem, help MSMEs integrate into Global Value Chains, unleash India’s export potential, establish India’s traditional products as global brands, thus augmenting our outbound shipments in the near future, observed Panda.
“The thrust laid by the Government on giving a boost to Indian manufacturing and exports through robust policy initiatives, technology integration for improving business environment and introduction of measures for promoting exports will go a long way in enhancing India’s market share in global exports,” elaborated Harish Ahuja, Chairman, FICCI Foreign Trade and Trade Facilitation Committee.
Anil Mathew, Co-chairman, FICCI Foreign Trade and Trade Facilitation Committee, expects the policy to be dynamic and responsive to the emerging trade and global economic outlook scenario.
Overall, the new policy takes a more dynamic approach of moving from incentive to tax remission, export promotion through collaboration, greater trade facilitation and focus on emerging areas such as e-commerce, green technology which will help the industry contribute towards higher accelerated exports in coming years, he noted.
“By not setting a five-year target date for the policy to end, the government has provided the flexibility to take feedback and update the document as and when required and focus more on long term goals,” he said, appreciating overall trade boosting efforts. fiinews.com
