Recapitulation
The unveiling of India's Foreign Trade Policy (FTP) 2023 aims to strengthen the "export control" regime while promoting exports and making doing business easier for exporters. India's total exports, which include both services and goods, have already surpassed US$ 750 billion, and US$ 760 billion is anticipated. On August 6th, 2021, the exporters were contacted and urged to enhance exports and become more fully integrated into the global value chain. In these difficult times, it is a tremendous accomplishment that global exports have crossed the US$ 760 billion threshold.

The policy is founded on four pillars: Incentive to Remission, Export Promotion through Collaboration, Ease of Doing Business, and Emerging Areas. It is built on the tenets of trust and engagement with exporters. Since 2015, policy modifications have been made despite the absence of an official declaration of a new FTP that would react quickly to new circumstances.

Blueprint Of New Foreign Trade Policy Approach
The FTP 2023 provides several new programs, including a one-time amnesty program allowing exporters to finish up any outstanding authorizations and begin again. Additionally, it promotes the recognition of exporters through the Status Holder Scheme and new communities through the Communities of Export Excellence Scheme. The popular Advance Authorization and EPCG programs are streamlined by the policy, and merchanting trade from India is made possible.

Automating And Re-Engineering Processes
Through automated systems with risk management systems for multiple clearances in the new FTP, exporters are receiving more trust. The strategy prioritizes export development and promotion, shifting from an incentive regime to a regime that is facilitating, based on technological interface and collaborative principles.

Through automated IT systems with risk management systems for multiple clearances in the new FTP, exporters are receiving more trust. The strategy prioritizes export development and promotion, shifting from an incentive regime to a regime that is facilitating, based on technological interface and collaborative principles.

FTP 2023 expands on prior "ease of doing business" initiatives by codifying implementation procedures in a paperless, online environment. It will be simpler for MSMEs and others to receive export benefits thanks to reduced fee structures and IT-based programs. Regional Offices will now administer duty exemption programs for export production in a rule-based IT system environment, doing away with the requirement for manual interface.

The Advance and EPCG Schemes will cover all processes, including issuance, revalidation, and EO extension, in a staggered manner over the FY23–24. Cases identified under the risk management framework will be examined manually, but initially, it is anticipated that the bulk of applicants will go through the "automatic" path. Regional Offices will now administer duty exemption programs for export production in a rule-based IT system environment, doing away with the requirement for manual interface.

The Advance and EPCG Schemes will cover all processes, including issuance, revalidation, and EO extension, in a staggered manner over the FY23–24. Cases identified under the risk management framework will be examined manually, but initially, it is anticipated that the bulk of applicants will go through the "automatic" path.

Towns of Excellence for Export
Along with the 39 already named towns, four more, namely Faridabad, Mirzapur, Moradabad, and Varanasi have been given the title of Towns of Export Excellence (TEE). The EPCG Scheme will allow the TEEs to take advantage of Common Service Provider (CSP) benefits for export fulfillment as well as priority access to export promotion funding under the MAI scheme. The export of handlooms, handicrafts, and carpets is anticipated to increase as a result of this development.

Acknowledgement of Exporters
Exporter companies with 'status' based on export performance will now participate as partners in capacity-building projects using their best efforts. Similar to the "each one teaches one" project, those with 2-star status and higher would be urged to give interested people trade-related training based on a sample curriculum.

This will assist India in creating a trained labor pool that can support a $5 trillion economy before 2030. To increase the number of exporting companies that receive 4 and 5-star ratings, status recognition requirements have been re-calibrated. This has improved branding potential in export markets.

Encouraging the districts' exports
The Districts as Export Hubs (DEH) initiative, which seeks to encourage exports at the district level and hasten the creation of a grassroots trade ecosystem, is being carried forward by the FTP in conjunction with state governments. Through an institutional system, the state export promotion committee and district export promotion committee at the state and district levels, respectively, will work to identify export-worthy goods and services and address issues at the district level for each district, district-specific export action plans defining the district-specific strategy to encourage export of designated goods and services must be produced.

Simplifying the SCOMET Policy
India is emphasizing the "export control" regime more and more as its cooperation with export control regime nations grows. Stakeholders are more aware of SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies), and the policy regime is being strengthened to implement international treaties and accords that India has signed. A strong export control system in India will enable exporters to access dual-use, high-end goods, and technologies while easing the export of SCOMET-controlled commodities and technologies from India.

facilitating exports via e-commerce
Exports through e-commerce are a potential sector that requires different types of policy interventions than conventional offline trade. By 2030, the potential for e-commerce exports is estimated to be between $200 and $300 billion. The goal and plan for creating e-commerce hubs, together with related components including payment reconciliation, bookkeeping, returns policy, and export entitlements, are described in FTP 2023.

The consignment-based limit for courier-based e-commerce exports has been increased from $5 lakh to $10 lakh in the FTP 2023 as a starting point. The exporters' comments will determine whether this cap is further amended or ultimately eliminated. Exporters will be able to make FTP claims if courier and postal exports are integrated with ICEGATE.

Based on the recommendations of the working committee on e-commerce exports and inter-ministerial discussions, the complete e-commerce policy covering the export/import ecosystem will be developed soon. To increase the capacity of craftsmen, weavers, clothing manufacturers, gem and jewelry designers, and other industry participants, extensive outreach and training initiatives will be implemented.

Facilitation under the Scheme for Advance Authorization
In advance approval similar to the EOU and SEZ scheme, the scheme used by DTA units allows duty-free import of raw materials for the production of export goods. The DTA unit, however, is adaptable enough to work for both local and export production. Based on discussions with business and export promotion councils, the current FTP now includes provisions for facilitation to enable the fast execution of export orders, the special advance authorization scheme was expanded to include exports of the apparel and clothing sector under paragraph 4.07 of the HBP on a self-declaration basis. Norms would be defined within a set time frame. Benefits of the self-ratification scheme for fixation of input-output norms extended to authorized economic operators at 2-star status and above.

Merchanting Trade
The FTP 2023 has included provisions for merchanting commerce to turn India into a center of merchanting trade. It would now be possible to trade in restricted and prohibited goods by export regulations. With the help of an Indian middleman, items are transported from one foreign country to another without ever entering Indian ports. This is subject to following RBI regulations and won't apply to products or items that are on the cites or SCOMET list. This will eventually enable Indian businesspeople to transform locations like Gift City, etc., into important commercial hubs like those in Dubai, Singapore, and Hong Kong.

Amnesty Scheme
To help exporters overcome their problems, the government is steadfastly devoted to decreasing litigation and encouraging relationships built on trust. The government is creating a unique one-time amnesty scheme under the FTP 2023 to resolve default on export obligations, in keeping with the "vivid se Vishwas" strategy, which tried to settle tax disputes amicably.

This program is designed to help exporters who have struggled to fulfill their responsibilities under EPCG and Advance Authorizations and who are suffering from the high duty and interest charges brought on by pending cases. Upon payment of all customs taxes that were exempted in proportion to the unmet Export Obligation, all pending instances of the default in fulfilling the Export Obligation (EO) of the authorizations indicated may be regularized. Under this arrangement, the maximum amount of interest that can be paid is 100% of the exempted duties.

However, since no interest is due on the share of Additional Customs Duty and Special Additional Customs Duty, exporters will likely feel relieved as their interest costs will be significantly reduced.

Conclusion
With no specific expiration date and a primary focus on the globalization of trade in rupees, India's new Foreign Trade Policy 2023 leaves room for ongoing revisions in response to export industry demands. It aspires to increase exports to $2 trillion by 2030, and it will mostly use e-commerce to do so. It will also convert districts into export hubs and streamline the SCOMET policy. FTP 2023 would hence increase the export competitiveness of India in the international market.