To inspire exporters to dream big, the new Foreign Trade Policy (2022-27), which is expected to be announced later this week, will likely feature a “vision statement” laying out the roadmap for increasing India’s share. in world trade at 10 percent. 100 of world trade by 2047 and 3% by 2027, against 2.1% currently, according to one source.
Other goals to be achieved over the next 25 years include establishing 100 Indian brands as global champions, achieving a 10% share in the creative economy and niche products, supporting establishment of economic zones outside India as a continuation of the “Aatmanirbhar Bharat” initiative and the creation of “ONE” Customs will provide import/export clearance within one hour of arrival at entry points /customs ports, according to a presentation made by the Department of Commerce at the recent meeting of the Board of Trade.
“There will be no new major scheme in FTP 2022-27, providing tax support as the entry fee rebate schemes, such as the RoDTEP and the RoSCTL are already in place, and must also remain within the parameters given by the WTO.But all efforts are being made to improve infrastructure support, reduce costs, promote R&D, improve e-commerce and support MSMEs through the new policy, in line with the policy vision. Pharmaceuticals, gemstones and jewelry, marine and agriculture, textiles, leather, engineered products, electronics and telecommunications products and chemicals will be the priority sectors for increasing the production and exports,” according to the vision document.
“Become the top 3 in global services trade in tourism, IT and ITES, business services and financial services including fintech, health and wellness, education and services audiovisual”, is another priority listed in the document for the next 25 years.
India had exports of goods and services worth $650 billion in 2021-22 and the Commerce Department has targeted exports worth $2 trillion by 2030. The goals of the vision statement go in that direction,” the source said.
The new five-year FTP was due to be announced in 2020 but was delayed due to Covid-19 disruptions. It will now be implemented from October 1 and is expected to last for a full five years, until 2027, to give exporters much-needed political stability.
September 25, 2022