Syllabus: GS3/ Economy
In News
- The Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy, 2023 introducing a legal framework for mandatory stakeholder consultations before formulating or amending the policy.
- The amendment was made under the authority of the Foreign Trade (Development & Regulation) Act, 1992.
About FTP 2023
- Objective: Streamline processes and automate procedures to make it easier for exporters.
- Achieve $2 trillion in exports by 2030.
- Key Features:
- Districts as Export Hubs: Develop infrastructure (logistics, testing, connectivity) to support exports at the regional level.
- Expanded Export Promotion Capital Goods (EPCG) Scheme: Include major initiatives like PM MITRA (Prime Minister Mega Integrated Textile Region and Apparel Parks) under this scheme to promote capital goods exports.
- Digital Economy Focus: Establish E-Commerce Export Hubs to facilitate cross-border trade in the digital economy.
- Exporter Recognition: Recognize high-performing exporters and involve them in capacity-building initiatives.
- Streamlined (Special Chemicals, Organisms, Materials, Equipment and Technologies) Policy: Improve access to dual-use goods and technologies while ensuring responsible exports of controlled items.
Impact of the Amendments
- Ease of Doing Business: The primary objective is to improve the ease of doing business in India by fostering greater participation and collaboration with stakeholders in trade policy decisions.
- Inclusivity: To foster inclusiveness and transparency in policymaking by engaging stakeholders while also retaining the government’s authority to address exceptional circumstances through suo moto decisions.
- Better Competitiveness: With initiatives like district hubs, e-commerce facilitation, and capacity building for exporters, FTP 2023 is positioned to enhance India’s global trade competitiveness, aligning with the target of $2 trillion exports by 2030.
Source: PIB