According to experts, the newly announced Foreign Trade Policy (FTP) 2023 will facilitate the export growth of sectors such as e-commerce, electric vehicle batteries, and farm equipment. The policy, which was released on March 31 by India, aims to boost outward shipments to USD 2 trillion by 2030 and promote e-commerce exports in the face of global uncertainties while emphasizing rupee trade.
Deloitte India Economist Discusses New Foreign Trade Policy’s Long-Term View
According to Deloitte India’s Economist, Rukmi Majumdar, the policy focuses on the manufacturing and export sectors with a long-term view.
Rukmi Majumdar explained that the policy will benefit sectors like green hydrogen, garment, and electric vehicle (EV) batteries. She further added that encouraging trade in the Indian rupee would be a relief, given that more than 80% of trade is conducted in USD. This move would enhance the country’s resilience to external shocks and augment its negotiating power in the international trade arena, she noted.
IndusLaw Partner Highlights Benefits of New Foreign Trade Policy for Specific Sectors
Shashi Mathew, who is a partner at IndusLaw, states that the government’s policy aims to enhance digitization and streamline the procedures to create a more favorable environment for businesses and reduce the amount of time required for various processes. Shashi said, specific sectors such as e-commerce, merchanting trade, and products related to green technology, including farming equipment and electric vehicles, will experience significant advantages from the policy.
CII National Committee Chairman Praises India’s New Foreign Trade Policy for Boosting Business Sentiments and Export Performance
Meanwhile, Sanjay Budhia, chairman of the CII National Committee on Exports and Imports, expressed that the new policy would boost business sentiments and enable India to fulfill its ambition of becoming a worldwide leader in exports.
New Foreign Trade Policy Emphasizes Minimizing Transaction Costs and Promoting INR Internationalization and E-commerce Exports
Sanjay Budhia also mentioned that the new Foreign Trade Policy (FTP) is commendable because it lowers the export performance threshold, allowing more exporters to achieve a higher status and decreasing the transaction costs for exports. He also stated that the policy strongly prioritizes minimizing transaction costs, promoting the internationalization of INR, and facilitating e-commerce exports, which could be transformative for positioning India as a leader in the global export arena.